TCREUR_Public/080930.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Tuesday, September 30, 2008, Vol. 9, No. 194

                            Headlines

A U S T R I A

GESO LLC: Claims Registration Period Ends October 21
GLOBAL BEVERAGES: Claims Registration Period Ends October 21
HDG CONSULTING: Claims Registration Period Ends October 21
KK LLC: Claims Registration Period Ends October 15
MAT LLC: Claims Registration Period Ends October 17

SOLARTEC PHOTOVOLTAIK: Claims Registration Period Ends October 6


B E L G I U M

FORTIS NV: Gets EUR11.2 Bil. Cash Injection from 3 Governments


C Y P R U S

RESERVE INVEST: Moody's Reviews B1 FCR for Possible Downgrade


C Z E C H   R E P U B L I C

BOHEMIA CRYSTALEX: Prague Court Launches Insolvency Proceedings
PORCELA PLUS: Undergoes Insolvency Proceedings


F I N L A N D

GOODYEAR TIRE: To Tap US$600MM Credit Facility Due to Fund Woes
GOODYEAR: Drawing US$600MM Facility Won't Affect S&P's Ratings
UPM-KYMMENE: Applies for Listing of Stock Options 2005H


G E R M A N Y

ARCANDOR AG: Achieves Refinancing Concept for Travel and Retail
COUPONTIP GMBH: Claims Registration Period Ends October 7
EPICEPT CORP: Amends DURECT License; Gets US$2.25MM Cash Payment
ESCADA AG: Posts EUR19.5MM Loss for First Nine Months FY07/08
ESCADA AG: S&P Downgrades Corporate Credit Rating to B- From B+

HELMRICH BAU GMBH: Claims Registration Period Ends October 7
HORN IT: Claims Registration Period Ends October 7
HYPO REAL ESTATE: Secures New Funds, Won't Pay FY 2008 Dividends
ILYPSYS GMBH: Claims Registration Period Ends October 6
K & D KOMMUNIKATION: Claims Registration Period Ends October 7

KBK KRONBERGER: Claims Registration Period Ends October 2
KIPA PLANUNG: Claims Registration Period Ends October 2
KOERNERSTRASSE PERSONALDIENSTLEISTUNGEN: Claims End Oct. 2
LEHMAN BROTHERS: Legal Hurdles in Sale of German Unit Likely
LMO GMBH: Claims Registration Period Ends October 6

MARC IMMOBILIEN: Claims Registration Period Ends October 2
MOEBELHOF WELLSEE: Claims Registration Period Ends October 7
NEUROPROGEN GMBH: Claims Registration Period Ends Oct. 6
SCHUH-SHOP MODE: Claims Registration Period Ends October 7
SIM ELEKTROTECHNIK: Claims Registration Period Ends October 2

TECHNOLOGIE-FONDS MANAGEMENT: Claims Registration Ends Oct. 2


G R E E C E

OLYMPIC: Privatizations Committee Starts Bidding Process


I T A L Y

ALITALIA SPA: CAI Revives Bid, Mulls Tie-Up With Foreign Carriers
TELECOM ITALIA: Libyan Fund Offers EUR4BB Investment in Holding Co


K A Z A K H S T A N

ALTYN SAGAT: Creditors Must File Claims by November 12
AREVA T&D: Claims Deadline Slated for November 11
AVIA TRANS: Claims Filing Period Ends November 12
KULANDY ENERGY: Creditors' Claims Due on November 12
RELKOM SL: Claims Registration Ends November 12

STROYMASTER-IV LLP: Creditors Must File Claims by November 12
SVYAZ LLP: Creditors Must File Claims by November 12
TECH STROY: Claims Filing Period Ends November 12
U.K. HOLDINGS: Creditors' Claims Due on November 11
UNIVERSAL OIL: Claims Registration Ends November 12


K Y R G Y Z S T A N

FIRST LEADER: Creditors Must File Claims by November 3


M A C E D O N I A

PROCREDIT BANK: Fitch Affirms Individual Rating at 'D/E'


N E T H E R L A N D S

EURAMAX INTERNATIONAL: Moody's Reviews Ratings for Possible Cut
EUROSAIL-NL 2007-1: Fitch Puts BB-Rated Notes on Watch Negative


N O R W A Y

BLUEWATER INSURANCE: S&P Affirms BB+ Counterparty Credit Rating


P O L A N D

CLAIRE'S STORES: Moody's Confirms PD Rating at 'Caa1'
SCO GROUP: July 31 Balance Sheet Upside-Down by US$3.2 Million

* POLAND: Faces Financial Uncertainty Due to U.S. Shock Waves


R U S S I A

KLIN RAYON: Weak Liquidity Prompts S&P to Affirm B- Credit Rating
KRASNOGVARDEYSKIY CHEMICAL: Claims Filing Period Ends Nov. 11
KRASNOUFIMSKIY RESEARCH: Creditors Must File Claims by Oct. 11
MOSCOW OBLAST: S&P Places BB Issuer Credit Rating on Watch Neg.
RENAISSANCE CAPITAL: Moody's Affirms E+ Financial Strength Rating

ROSNEFT OIL: Fined US$9 Million for Breach of Domestic Sales Law
SHAMARSKIY INDUSTRIAL: Creditors Must File Claims by October 11
STAL-M LLC: Creditors Must File Claims by October 11
TECHNO-MET CJSC: Creditors Must File Claims by October 11
TELE-KOM-STROY SPB: Creditors Must File Claims by October 11

URAL-PROM-TECHNOLOGY: Creditors Must File Claims by October 11
YUZHNO-URALSKAYA FUEL: Creditors Must File Claims by October 11


S L O V A K   R E P U B L I C

OTP BANKA: Moody's Affirms Bank Financial Strength Rating at D-


S P A I N

MADRID RMBS II: S&P Lowers Rating on Class D and E Notes to BB/B


S W I T Z E R L A N D

AAS ENGINEERING: Creditors Have Until Oct. 11 to File Claims
BLEXTRA IMMOBILIEN: Oct. 11 Set as Deadline to File Claims
BRODER-GETRANKE JSC: Creditors Must File Claims by Oct. 12
CHATEAU REVA: Deadline to File Proofs of Claim Set Oct. 11
HDIC LLC: Proofs of Claim Filing Deadline is Oct. 11

ILGENHOF JSC: Creditors' Proofs of Claim Due by Oct. 12
URECH LYSS: Oct. 10 Set as Deadline to File Proofs of Claim
ZEMAGEM LLC: Creditors Must File Proofs of Claim by Oct. 11


U K R A I N E

APEKS LLC: Creditors Must File Claims by October 11
DIBROVA OJSC: Creditors Must File Claims by October 11
DIV LLC: Creditors Must File Claims by October 11
KZ HOLDING: Creditors Must File Claims by October 11
PENTKOM LLC: Creditors Must File Claims by October 11

POLTAVA-DILO LTD: Creditors Must File Claims by October 11
SANATORIUM-PREVENTORIUM YUBILEYNY: Claims Filing Ends October 11
SPECIAL ELIT ASSEMBLY: Creditors Must File Claims by October 11
TRANSMACHINE OJSC: Creditors Must File Claims by October 11
UKRAINE AUTO: Fitch Changes Outlook on Class B Notes to Stable

UKRAINE MORTGAGE: Fitch Changes Outlook on Class B Notes to Stable
VTB JSC: Fitch Retains 'D/E' Individual Rating

* CITY OF KYIV: Fitch Revises Outlook to Negative from Stable


U N I T E D   K I N G D O M

A BURRELL: Brings in Liquidators from Baker Tilly
DEAN SMITH: Calls in Joint Administrators from Baker Tilly
FORDINGTON BUILDERS: Appoints Liquidators from Mazars
FORDINGTON WINDOWS: Taps Liquidators from Mazars
HARDY AMIES: Halts AIM Trading Due to Funding Problems

INGRAM CARE: Positive Life Buys Firm Out of Administration
LEHMAN BROTHERS: Euroclear Addresses Concerns Over Bank's Fallout
LEHMAN: Considers Structures for Client Assets Distribution
LIMOUSIN FOOD: Appoints Liquidators from PwC
LOIRE VALLEY: Brings in Joint Administrators from Tenon Recovery

MACKINNON LYNCH: Taps Joint Administrators from PwC
MINMAR LTD: Calls in Joint Administrators from Grant Thornton
NORTHERN AFFORDABLE: Taps Tenon Recovery as Administrators
PRO-PARTS LTD: Colin Prescott Leads Liquidation Procedure
RETAIL PRO: John C. Redding Quits as Secretary and General Counsel

SOVEREIGN OILFIELD: Can't Publish 2008 Report; Suspends Trading
TITAN EUROPE 2006-5: S&P Puts B-Rated Class F Notes on Watch Neg.
WINDERMERE XII: Fitch Cuts EUR59MM Class D Notes Rating to 'BB-'

* BRITAIN: Experts Urge Sensible Reforms in Bankruptcy Laws
* S&P Sees Weakening Outlook for European Mining & Steel Industry
* S&P Eyes Significant Impact on Global Synthetic CDOs From WaMu
* Europe Needs Tougher Laws, European MEPs Assert
* EU's Bank Regulation Hardly Keeps Up with Cross-Border Expansion

* Large Companies with Insolvent Balance Sheet


                         *********


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A U S T R I A
=============


GESO LLC: Claims Registration Period Ends October 21
----------------------------------------------------
Creditors owed money by LLC Geso have until Oct. 21, 2008, to file
written proofs of claim to the court-appointed estate
administrator:

         Dr. Kurt Freyler
         Seilerstatte 5
         1010 Vienna
         Austria
         Tel: 513 31 65
         Fax: 512 20 01
         E-mail: ra-kanzlei@rant-freyler.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:15 a.m. on Nov. 14, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 1, 2008, (Bankr. Case No. 4 S 127/08s).


GLOBAL BEVERAGES: Claims Registration Period Ends October 21
------------------------------------------------------------
Creditors owed money by JSC Global Beverages have until Oct. 21,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Alexander Knotek
         Pergerstrasse 12
         2500 Baden
         Austria
         Tel: 02252/43056-0
         Fax: 02252/43056-20
         E-mail: info@avia-law.com

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:30 a.m. on Nov. 4, 2008, for the
examination of claims at:

         The Land Court of Wiener Neustadt
         Room 15
         Wiener Neustadt
         Austria

Headquartered in Moedling, Austria, the Debtor declared bankruptcy
on Sept. 1, 2008, (Bankr. Case No. 11 S 95/08v).


HDG CONSULTING: Claims Registration Period Ends October 21
----------------------------------------------------------
Creditors owed money by LLC HDG Consulting have until Oct. 21,
2008, to file written proofs of claim to the court-appointed
estate administrator:

         Dr. Christof Stapf
         Esslinggasse 7
         1010 Vienna
         Austria
         Tel: 90 333
         Fax: 90 333-55
         E-mail: wien@snwlaw.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:00 a.m. on Nov. 4, 2008, for the
examination of claims at:

         The Trade Court of Vienna
         Room 1606
         Vienna
         Austria

Headquartered in Vienna, Austria, the Debtor declared bankruptcy
on Sept. 1, 2008, (Bankr. Case No. 4 S 125/08x).


KK LLC: Claims Registration Period Ends October 15
--------------------------------------------------
Creditors owed money by LLC KK have until Oct. 15, 2008, to file
written proofs of claim to the court-appointed estate
administrator:

         Dr. Ulla Reisch
         Goeglstrasse 11b
         3500 Krems an der Donau
         Austria
         Tel: 02732/484600
         Fax: 02732/484610
         E-mail: office.krems@ulsr.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 9:30 a.m. on Oct. 29, 2008, for the
examination of claims at:

         The Land Court of Krems an der Donau
         Hall A
         Second Floor
         Krems an der Donau
         Austria

Headquartered in Kottinghoermanns, Austria, the Debtor declared
bankruptcy on Sept. 4, 2008,(Bankr. Case No. 9 S 52/08g).


MAT LLC: Claims Registration Period Ends October 17
---------------------------------------------------
Creditors owed money by LLC Mat have until Oct. 17, 2008, to file
written proofs of claim to the court-appointed estate
administrator:

         Dr. Wilfrid Stenitzer
         Hauptplatz 32-34
         8430 Leibnitz
         Austria
         Tel: 03452/82203
         Fax: 03452/86742
         E-mail: office@stenitzer.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 10:00 a.m. on Oct. 23, 2008, for the
examination of claims at:

         The Graz Land Court
         Room 222
         Second Floor
         Graz
         Austria

Headquartered in Weinburg am Sassbach, Austria, the Debtor
declared bankruptcy on Sept. 10, 2008, (Bankr. Case No. 26 S
101/08k).


SOLARTEC PHOTOVOLTAIK: Claims Registration Period Ends October 6
----------------------------------------------------------------
Creditors owed money by LLC Solartec Photovoltaik have until
Oct. 6, 2008, to file written proofs of claim to the court-
appointed estate administrator:

         Mag. Thomas Schuster
         Bamberger Strasse 5
         9400 Wolfsberg
         Austria
         Tel: 04352/36 300
         Fax: 04352/36300-6
         E-mail: wolfsberg@juridicom.at

Creditors and other interested parties are encouraged to attend
the creditors' meeting at 11:30 a.m. on Oct. 13, 2008, for the
examination of claims at:

         The Land Court of Klagenfurt
         Meeting Room 225
         Second Floor
         Klagenfurt
         Austria

Headquartered in St. Stefan im Lavanttal, Austria, the Debtor
declared bankruptcy on Sept. 2, 2008, (Bankr. Case No. 41 S
95/08f).


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B E L G I U M
=============


FORTIS NV: Gets EUR11.2 Bil. Cash Injection from 3 Governments
--------------------------------------------------------------
Major European bank Fortis NV was bailed out by a trio of
governments after its shares slumped Thursday, September 25,
followed by another 20% decline the next day, amid concerns about
the company's solvency, The Wall Street Journal reports.
Particularly, investors are concerned the firm would struggle to
raise the EUR8.3 billion (US$12.1 billion) it's seeking to bolster
reserves, Bloomberg News relates.

According to WSJ, the Netherlands, Belgium and Luxembourg agreed
to inject EUR11.2 billion (US$16.37 billion) into Fortis on
Sunday, September 28, after France's BNP Paribas SA and Dutch
financial firm ING Groep NV walked away from talks to acquire
the company over the weekend.  As part of that package, Fortis
will sell its interest in ABN Amro Bank while Maurice Lippens will
resign as chairman of Fortis's board, the same report says.

The bank, Bloomberg News notes, needs more capital after spending
EUR24.2 billion on ABN Amro Holding NV assets last year, just as
the U.S. subprime-mortgage market started to collapse.  WSJ
describes the transaction as Fortis' biggest banking deal ever.
Next year, WSJ says, Fortis is expected to take possession of
ABN's private-client unit and Dutch operations, pending Dutch
regulatory approval.  Those assets currently reside in a holding
company set up to facilitate the ABN-Amro purchase, WSJ adds.

Fortis, whose shares are down 71% this year, replaced Friday its
interim chief executive, Herman Verwilst, after he tried
unsuccessfully to reassure investors that the bank remains on
sound footing, WSJ relates.  The bank then named Filip Dierckx,
currently head of the Belgian-Dutch company's banking unit, as its
new CEO, the WSJ report says.

"Fortis failed to restore confidence on its own and that can only
be done now with the help of the regulatory institutions or
rivals," Bloomberg News quoted Corne van Zeijl, a senior portfolio
manager at SNS Asset Management in Den Bosch, the Netherlands, as
saying.

Headquartered in Brussels, Belgium, Fortis N.V. --
http://www.fortis.com/-- is an international provider of banking
and insurance services to personal, business and institutional
customers.  The Company operates in four core businesses: Retail
Banking, Asset Management and Private Banking, Merchant Banking
and Insurance.  The Company delivers a package of financial
products and services through its own channels and via
intermediaries and other partners.  In May 2007, Fortis N.V.
finalized the acquisition of a 50.45% stake in Pacific Century
Insurance Holdings Limited.  As of June 15, 2007, the Company had
acquired a 98.59% stake in Pacific Century Insurance Holdings
Limited.  In July 2008, the Company sold International Asset
Management Limited (IAM).


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C Y P R U S
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RESERVE INVEST: Moody's Reviews B1 FCR for Possible Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed the B1 long-term foreign
currency issuer rating of Reserve Invest on review for possible
downgrade.

"The rating action reflects Moody's concerns that in the event of
continuing and deteriorating market turmoil, RIC -- despite
shareholder support which has been evidenced during intense market
volatility -- is likely to experience a deterioration in its
financial fundamentals and liquidity profile," says Vladlen
Kuznetsov, a Moscow-based Moody's Assistant Vice President-
Analyst, and lead analyst for this issuer.

The review will focus on the diversification and availability of
RICs funding sources.  In addition, Moody's notes that RIC is
likely to face a decline in earnings if the markets remain weak,
as the majority of revenues is generated by trading income on
LUKOIL American Depositary Receipts.  Moreover, RIC's relatively
concentrated exposures to a few names also presents additional
credit and liquidity risks.

Moody's notes that its review for possible downgrade of RIC is
expected to be concluded in the next month.

In November 2005, Moody's Investors Service assigned a B1 long-
term foreign currency issuer rating to RIC.  The outlook for the
rating was stable.

RIC is a large Cyprus-based financial company with total assets at
year-end 2007 of US$2.5 billion and equity of US$1.4 billion.  The
company reported ROE of 3% in 2007 (2006: 39%) as a strategic
LUKOIL stake did not produce enough income due to the weaker
performance of the Russian equity markets.


===========================
C Z E C H   R E P U B L I C
===========================


BOHEMIA CRYSTALEX: Prague Court Launches Insolvency Proceedings
---------------------------------------------------------------
The Prague City Court, on Sept. 22, launched insolvency
proceedings against Czech glass maker Bohemia Cystalex Trading at
the request of the company's management, CTK reports, citing the
insolvency register published on the server www.justice.cz as its
source.

Meanwhile, Porcela Plus, related to BCT, has been undergoing
insolvency proceedings since Sept. 19, the report discloses.

According to the report, the management of BCT and Porcela remain
in talks with creditor banks to discuss the possibilities of
restructuring and solve the lack of operating capital both
companies are facing.

"In spite of the proceedings they are still in talks with creditor
banks and shareholders in order to maintain the key production," a
spokesman for BCT was quoted by the report as saying.

Harrachov glassworks owner Frantisek Novosad blamed the financial
difficulties of Czech glass and china makers on cheap competition
from Asian countries, the strong crown, and the financial crisis
in the US, the report relates.

Mr. Novosad declared the financial crisis in the US, which is the
chief market for Czech glassmakers, has led BCT into an
"unsolvable situation, when it lacks operating capital".

Mr. Novosad added other factors that contributed to the group's
problems include the soaring prices of gas and electricity as well
as loans.  The group incurred debts of nearly CZK4 billion.

BCT, the report says, had been negotiating the possibilities of
restructuring its debts for four years.  At end-2007 creditors
decided to issue bonds but "the decision has not, however, been
materialized due to the crisis on the financial markets,"
according to Mr. Samec.

In 2007, BCT, which employs, 5,000 staff, reported sales of about
CZK5 billion.  Its majority shareholders are entrepreneurs Radovan
Kvet and Jan Soucek.  The state owns indirectly 49 percent of
shares, while CSOB holds a 1% stake, the report reveals.  Porcela
Plus, on the other hand, is 65-percent owned by the state, while
Soucek and Kvet have the rest.  It employs around 2,000 staff.

Citing the weekly Euro the report notes the state has, however,
refused to take over stakes in both companies to help rescue them.

As of Aug. 31, BCT and Porcela Plus together owed over CZK2.9
billion to their suppliers and their bank loans amounted to CZK1.8
billion.  Their total assets stood at CZK5.576 billion, the report
states.


PORCELA PLUS: Undergoes Insolvency Proceedings
----------------------------------------------
Porcela Plus has been undergoing insolvency proceedings since
Sept. 19, CTK reports, citing the insolvency register published on
the server www.justice.cz as its source.

Meanwhile, the report discloses the Prague City Court, on
Sept. 22, launched insolvency proceedings against Czech glass
maker Bohemia Cystalex Trading (BCT) at the request of the
company's management.

BCT is related to Porcela Plus.

According to the report, the management of BCT and Porcela remain
in talks with creditor banks to discuss the possibilities of
restructuring and and solve the the lack of operating capital both
companies are facing.

"In spite of the proceedings they are still in talks with creditor
banks and shareholders in order to maintain the key production," a
spokesman for BCT was quoted by the report as saying.

Harrachov glassworks owner Frantisek Novosad blamed the financial
difficulties of Czech glass and china makers on the cheap
competition from Asian countries, the strong crown, and the
financial crisis in the US, the report relates.

Mr. Novosad declared the financial crisis the financial crisis in
the US, which is the chief market for Czech glassmakers, has led
BCT into an "unsolvable situation, when it lacks operating
capital".

Mr. Novosad added other factors that contributed to the group's
problems include the soaring prices of gas and electricity as well
as loans.  The group incurred debts of nearly CZK4 billion.

BCT, the report says, had been negotiating the possibilities of
restructuring its debts for four years.  At end-2007 creditors
decided to issue bonds but "the decision has not, however, been
materialized due to the crisis on the financial markets,"
according to Mr. Samec.

In 2007, BCT, which employs, 5,000 staff, reported sales of about
CZK5 billion.  Its majority shareholders are entrepreneurs Radovan
Kvet and Jan Soucek.  The state owns indirectly 49 percent of
shares, while CSOB holds a 1% stake, the report reveals.  Porcela
Plus, on the other hand, is 65-percent owned by the state, while
Soucek and Kvet have the rest.  It employs around 2,000 staff.

Citing the weekly Euro the report notes the state has, however,
refused to take over stakes in both companies to help rescue them.

As of Aug. 31, BCT and Porcela Plus together owed over CZK2.9
billion to their suppliers and their bank loans amounted to CZK1.8
billion.  Their total assets stood at CZK5.576 billion, the report
states.


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F I N L A N D
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GOODYEAR TIRE: To Tap US$600MM Credit Facility Due to Fund Woes
-------------------------------------------------------------
The Goodyear Tire & Rubber Co. will draw US$600 million from its
existing U.S. revolving credit facility due to a temporary delay
in its ability to access US$360 million of cash currently invested
with The Reserve Primary Fund.  The funds will also be used to
support seasonal working capital needs and to enhance the
company's cash liquidity position.

The Reserve Primary Fund, a money market fund, has delayed the
payment of requested redemptions pursuant to a U.S. Securities and
Exchange Commission Order allowing an orderly disposition of its
securities.

David Horn at The North Carolina News Network relates that a run
on redemptions had led to the Reserve Primary Fund losing more
than 60% of its assets, as the fund lost value because some of its
investments were in Lehman Brothers' debt.

Goodyear's other U.S. cash investments remain fully accessible by
the company.

Goodyear also said that the expiration of the 30-day period to
appeal the U.S. District Court's Order approving the settlement
agreement that established the Voluntary Employees' Beneficiary
Association trust, which will provide healthcare benefits to the
company's current and future United Steelworkers retirees.  No
appeals were filed.  Goodyear now can remove liabilities for USW
union retiree healthcare benefits from its balance sheet.  As of
year-end 2007, these liabilities were approximately US$1.2
billion.  As previously announced, the company fully funded the
US$1 billion VEBA following the court's Aug. 22 settlement
approval.  At the end of the second quarter, Goodyear reported a
global cash balance of approximately US$2.1 billion prior to
funding the VEBA.

                      About Goodyear Tire

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 60 facilities in 26 countries
and employs 80,000 people worldwide.  Goodyear has subsidiaries in
New Zealand, Venezuela, Peru, Mexico, Luxembourg, Finland, Korea
and Japan, among others.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on March 6,
2008, Fitch Ratings upgraded The Goodyear Tire & Rubber Company's
Issuer Default Rating to 'BB-' from 'B+' and senior unsecured debt
rating to 'B+' from 'B-/RR6'


GOODYEAR: Drawing US$600MM Facility Won't Affect S&P's Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on The
Goodyear Tire & Rubber Co. (BB-/Positive/--) are not immediately
affected by the company's announcement that it will draw down
US$600 million of its U.S. revolving credit facility because
Goodyear's access to US$360 million of cash invested with The
Reserve Primary Fund has been delayed temporarily.  Once the
drawdown has been completed, S&P believes the company's cash
position and available credit facilities will be sufficient to
support near-term cash needs.

In light of the anxious state of the capital markets, S&P believes
the company's action reflects prudent steps to minimize the
effects of any unexpected credit disruptions.  Although recent
events have diminished Goodyear's liquidity, S&P expects the
impact to be temporary and therefore will not significantly affect
the company's financial risk profile.  Nevertheless, S&P remains
concerned that weak credit markets, if sustained, could complicate
Goodyear's funding of its business plan.


UPM-KYMMENE: Applies for Listing of Stock Options 2005H
-------------------------------------------------------
UPM-Kymmene Oyj said in a statement Friday that it had applied for
listing of the stock options 2005H on the stock exchange list of
the OMX Nordic Exchange Helsinki starting tomorrow, Oct. 1, 2008.

The total number of stock options 2005H is 3,000,000.  Each stock
option entitles its holder to subscribe for one UPM-Kymmene
Corporation share.  In the aggregate, the stock options 2005H
entitle holders to subscribe for 3,000,000 shares.

The dividends payable annually will be deducted from the share
subscription price. The current share subscription price for stock
option 2005H is EUR 20.15/share.  The subscription prices will be
recorded in the invested non-restricted equity fund.  The share
subscription period with stock options 2005H will commence on
Oct. 1, 2008, and end on Oct. 31, 2010.

                      New Business Structure

On September 10, UPM said it will adopt a completely new business
structure during the autumn.  In the future the company will
consist of three Business Groups which are: 1) Energy and Pulp, 2)
Paper, and 3) Engineered Materials. Previously the company
consisted of five divisions.  The change will take effect on
December 1, 2008.  The current organization will continue until
then.

Energy and Pulp Business Group consists of pulp mills in Finland,
hydro power assets, and shares of associated pulp and energy
companies.  The Business Group is also responsible for forests and
wood sourcing as well as the timber business. Biofuels business
will be a part of this entity and their development belongs to
this Business Group.

Mr Tapio Korpeinen has been appointed President of the Energy and
Pulp Business Group.  Tapio Korpeinen, 45, holds a M.Sc.(Eng.) and
MBA and is currently UPM's Senior Vice President, Strategic
Planning.

Paper Business Group consists of magazine, fine and speciality
paper as well as newsprint businesses.  Mr Jyrki Ovaska has been
appointed President of Paper Business Group.  Jyrki Ovaska, 49,
holds a M.Sc. (Eng.) and is currently the President of UPM's
Magazine Paper Division.

Engineered Materials Business Group consists of self-adhesive
labelstock, plywood, wood plastic composite and RFID business
areas.  Mr Jussi Vanhanen has been appointed President of the
Engineered Materials Business Group.  Jussi Vanhanen, 36, holds a
LL.M. and MBA and is currently Senior Vice President, Europe, in
UPM's Label Division.

The new Executive Board consists of the President and CEO, the
three Business Group Presidents and Mr Jyrki Salo, Executive Vice
President, CFO.  Jyrki Salo's resposibilities will also include
Information Technology, Logistics and Global Sourcing.

The Executive Team consists of the following members as of
December 1, 2008:

   - Mr Juha Makela, Group General Counsel,
   - Mr Hartmut Wurster, Executive Vice President, Technology,
   - Mr Hans Sohlstrom, Executive Vice President, Corporate
     Relations and  Development,
   - Ms Pirkko Harrela, Executive Vice President, Corporate
     Communications,
   - Ms Riitta Savonlahti, Executive Vice President, Human
     Resources, and
   - Ms Anu Ahola, Executive Vice President, Strategic Planning.

Tapio Korpeinen, Jussi Vanhanen, Juha Makela and Anu Ahola are new
Executive Team members.

Mr Pauli Hanninen, the current Executive Vice President,
Technology will continue in Group projects reporting to the CEO.

As earlier agreed, Mr Matti Lindahl, the President of Wood
Products Divisions, will retire at the end of 2008 at the age of
62.

Mr Heikki Pikkarainen has stated that as he is not able to
identify a suitable position in the new organization, he has
decided to leave the company later this year in a jointly agreed
manner.

Mr Markku Tynkkynen will leave the Executive Team out of his own
initiative.  He will leave the company by a mutual agreement.

The new organization and responsibilities will take effect Dec. 1,
2008.

After the new business structure will take effect, the company
will report financial information for the following segments:
Energy, Pulp, Forest and Timber, Paper, Label Materials, Plywood
and Other operations.  Energy and Pulp include shares of
corresponding associated companies.

UPM will report the results for 2008 according to the new
structure on February 5 , 2009.  Comparable financial figures for
Q107–Q308 will be published in December 2008.

              Closure of Paper and Pulp Mills in Finland

Amid slow growth and rising costs, UPM said it plans to close its
least competitive paper and pulp capacity in Finland as well as to
streamline operations in all business groups, units and functions.
The number of employees affected by the program is estimated to be
approximately 1,600 in 2009–2010.  The move is expected to result
in cost savings of about EUR70 million in fixed costs.

In case the closures will be implemented as planned, UPM will book
in Q4/2008 a EUR170 million write-off in fixed assets and make a
provision for the reduction in the number of employees, and other
closure costs of about EUR 30 million.

Specifically, UPM is planning:

   - a possible closure of Kajaani paper mill
     in Finland by the end of 2008;

   - a possible closure of Tervasaari pulp mill
     in Valkeakoski, Finland by the end of 2008;

   - significant efficiency improvement of UPM's
     Label Division in Europe in 2009–2010; and

   - streamlining of operations in all business
     groups, units and functions.

                    Goodwill Impairment Charge

UPM said it will record an impairment charge of the Newsprint
Division's goodwill in the third quarter.  The company's view of
the newsprint market outlook has weakened.

UPM has carried out the testing of goodwill of the Newsprint
according to IAS 36. Based on the outcome, UPM will record an
impairment charge of approximately EUR230 million from the
Division's goodwill.  The primary drivers for the impairment
relate to lower-than-forecast realized newsprint market demand in
Europe and continued overcapacity in Europe together with
increased costs.  Due to the impairment, deferred tax liabilities
will be decreased by approximately EUR28 million.

The total amount of the Newsprint Division's goodwill at the end
of December 2007 was EUR475 million.

                       About UPM-Kymmene

Headquartered in Helsinki, Finland, UPM-Kymmene Oyj is a global
forest products group with core businesses in printing papers,
speciality papers, label materials and wood products.  UPM has
production in 14 countries and employs about 26,000 people.  The
company's sales in 2007 exceeded EUR10 billion.  The group's key
mills are located in Finland, Germany, France, the UK, Austria,
the United States and China.  UPM's shares are listed on the OMX
Nordic Exchange Helsinki, and the company has an ADR program on
the OTC market in the United States.

                         *     *     *

UPM-Kymmene Oyj continues to carry a "BB+" Long Term Issuer
Default Rating and "B" Short Term Issuer Default Rating placed by
Fitch Ratings on July 28, 2008, with a Negative outlook.


=============
G E R M A N Y
=============


ARCANDOR AG: Achieves Refinancing Concept for Travel and Retail
---------------------------------------------------------------
Arcandor AG and the Mandate Lead Arrangers of Arcandors financing
banks (BayernLB, Dresdner Bank AG, Royal Bank of Scotland plc) on
Tuesday, Sept. 23, 2008, achieved the mutual understanding on the
refinancing-concept for the Travel- and Retail-Group.

The credit insurers Atradius, Coface, Euler Hermes and Zurich
declared that they in parallel to this financing will provide the
credit lines as they are needed to support Arcandor's business.

Arcandor AG (fka KarstadtQuelle AG) --
http://www.arcandor.com/-- is a Germany-based tourism and retail
group.  Its three core business areas are tourism, mail order
services and department store retail.  The Company's business
areas are covered by its three operating segments: Thomas Cook,
Primondo and Karstadt.


COUPONTIP GMBH: Claims Registration Period Ends October 7
---------------------------------------------------------
Creditors of Coupontip GmbH & Co. KG have until Oct. 7, 2008, to
register their claims with court-appointed insolvency manager
Thomas Kind.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Nov. 18, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Karlsruhe
         Hall IV
         First Floor
         Schlossplatz 23
         76131 Karlsruhe
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Thomas Kind
         Eisenbahnstr. 19-23
         77855 Achern
         Germany

The District Court of Karlsruhe opened bankruptcy proceedings
against Coupontip GmbH & Co. KG on Sept. 1, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Coupontip GmbH & Co. KG
         Vichystr. 9
         76646 Bruchsal
         Germany


EPICEPT CORP: Amends DURECT License; Gets US$2.25MM Cash Payment
--------------------------------------------------------------
EpiCept Corporation has amended its Dec. 20, 2006 licensing
agreement with DURECT Corporation granting DURECT exclusive,
worldwide rights to certain EpiCept intellectual property for a
transdermal patch containing bupivacaine for the treatment of back
pain.

Under the terms of the amended agreement, EpiCept has granted
DURECT royalty-free, fully paid up, perpetual and irrevocable
rights to the intellectual property licensed as part of the
original agreement in exchange for a cash payment of US$2,250,000
from DURECT.

EpiCept intends to use the proceeds of this non-dilutive cash
payment as working capital and for general corporate purposes as
the Company prepares for the launch of Ceplene(R) (histamine
dihydrochloride) following receipt of final marketing
authorization in Europe, which EpiCept anticipates receiving
within the next several weeks.

                   About EpiCept Corporation

Based in Tarrytown, New York, EpiCept Corporation (NASDAQ:EPCT) --
http://www.epicept.com/-- is a specialty pharmaceutical company
focused on the development of pharmaceutical products for the
treatment of cancer and pain.  The company has a portfolio of five
product candidates in active stages of development.  It includes
an oncology product candidate submitted for European registration,
two oncology compounds, a pain product candidate for the treatment
of peripheral neuropathies and another pain product candidate for
the treatment of acute back pain.  The two wholly owned
subsidiaries of the company are Maxim, based in San Diego,
California, and EpiCept GmbH, based in Munich, Germany, which are
engaged in research and development activities.

                      Going Concern Doubt

Deloitte & Touche LLP, in Parsippany, New Jersey, expressed
substantial doubt about EpiCept Corp.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the year ended Dec. 31, 2007.  The auditing firm
pointed to the company's recurring losses from operations and
stockholders' deficit.

The company disclosed in its Form 10-Q for the second quarter
ended June 30, 2008, a net loss of US$7,765,000.  EpiCept Corp.'s
consolidated balance sheet at June 30, 2008, showed total assets
of US$3,093,000, total liabilities of US$22,598,000, and a
stockholders' deficit of US$19,505,000, compared to a deficit of
US$14,177,000 at Dec. 31, 2007.  The company said it expects to
incur substantial net losses, in the aggregate and on a per share
basis, for the foreseeable future as it attempts to market and
sell Ceplene(R).  "We are unable to predict the extent of these
future net losses, or when we may attain profitability, if at all.
These net losses, among other things, have had and will continue
to have an adverse effect on our stockholders' equity. We
anticipate that for the foreseeable future our ability to generate
revenues and achieve profitability will be dependent on the
successful commercialization of Ceplene(R).  There is no assurance
that we will be able to obtain or maintain governmental regulatory
approvals to market Ceplene(R) in Europe.  If we are unable to
generate significant revenue from Ceplene(R), or attain
profitability, we may not be able to sustain our operations."


ESCADA AG: Posts EUR19.5MM Loss for First Nine Months FY07/08
-------------------------------------------------------------
During the first nine months of fiscal year 2007/2008 the Escada
Group generated sales of EUR430.4 million, a drop of 14.1% from
the same period one year ago (EUR501.3 million).  Currency-
adjusted the minus came to 11.4%.  Declining sales are primarily
due to heightened consumer restraint in key markets, which in turn
is the result of a further worsening of economic conditions in the
third quarter.

The business unit Escada generated nine months sales totaling
EUR290.1 million (vs. first nine months of 2006/2007: EUR339.9
million, -14.7%).  Sales of the Primera business unit, which is
highly dependent on the German market, came to EUR155.3 million
and were thus 13.1% short of last year's level (vs. first nine
months of 2006/2007: EUR178.8 million).

The Group's earnings before interest, taxes, depreciation and
amortization (EBITDA) came to EUR21.2 million after nine months
(2006/2007: EUR53.1 million).  Earnings were almost entirely
generated by the Escada business unit, which contributed a share
of EUR19.7 million (vs. first nine months of 2006/2007: EUR36.8
million).  The EBITDA of Primera fell to EUR1.5 million (vs. first
nine months of 2006/2007: EUR16.3 million).

For the first three quarters Escada Group reports a pre-tax result
of EUR-14.7 million (same period of last year: EUR18.3 million).
This includes one-time expenses from restructuring in the amount
of net EUR2.8 million (same period of last year: EUR6.7 million).
After taxes and minority interests, the Group showed a loss of
EUR19.5 million for the first three quarters (vs. first nine
months of 2006/2007: EUR-4.1 million).

The Group's third quarter sales were down to EUR134.6 million  (Q3
2006/2007: EUR157.0 million; -14.3%).  EBITDA came to EUR1.9
million (Q3 2006/2007: EUR15.5 million).

Following the two cash capital increases in the third quarter,
which generated a cash-in of net EUR50.5 million, the Escada Group
reported higher equity of EUR117.9 million per July, 31, 2008
(Oct. 31, 2007: EUR81.3 million).  The economic equity ratio
improved to 26.2% (Oct. 31, 2007: 19.5%).

For the full fiscal year 2007/2008 the Board of Management expects
Group sales to decrease in line with the trend of the first three
quarters.  Given the persistent worsening of the market
environment, the consolidated EBITDA is expected to be around
EUR23 to EUR26 million.  From today's perspective the Group's
result after taxes is expected to be negative at least in the
amount of the previous year.

                     About ESCADA AG

ESCADA AG -- http://www.escada.com/-- is an international
luxury fashion group in women's designer fashion.  It has
pursued a course of steady expansion since its founding in 1976
by Margaretha and Wolfgang Ley and today has 194 own shops and
226 franchise shops/corners in about 60 countries.

                         *     *     *

As reported in the TCR-Europe on Aug. 4, 2008, Moody's Investors
Service has confirmed Escada AG's Corporate Family Rating and
senior unsecured rating on the notes due 2012 to B2 (LGD3, 47%).
The rating action concludes the review process initiated on June
23, 2008 when the company announced the second profit warning in
less than three months.  The outlook on the ratings is left to
negative.


ESCADA AG: S&P Downgrades Corporate Credit Rating to B- From B+
---------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its long-term
corporate credit on German fashion designer and retailer ESCADA AG
to 'B-' from 'B+'.  The outlook is stable.

The two-notch downgrade also applies to ESCADA's EUR200 million
senior unsecured notes due in 2012.  The recovery rating of '3' on
these notes remains unchanged, indicating that lenders can expect
meaningful (50%-70%) recovery in the event of a payment default.

"The rating action reflects ESCADA's third profit warning and
evidence of material margin compression that will take time to
restore," said S&P's credit analyst Diego Festa.  "Consequently,
S&P expects that credit protection metrics will be slow to
recover.

"A recent EUR50 million capital increase, along with an existing
EUR90 million back-up facility, partly mitigates the operating
challenges and gives management the financial headroom necessary
to implement its turnaround strategy."

In the nine months ended July 31, 2008, ESCADA's like-for-like
sales dropped by a low double-digit percentage on 2007 figures,
leading EBITDA in the period to plummet 60%.  Declining sales and
profitability are attributed to the weak consumer response to the
company's Fall/Winter 2008 collection.  The deterioration of
macroeconomic conditions is also a compounding factor.

Debt measures remain weak, evidenced by the annualized ratio of
adjusted EBITDA interest coverage remaining persistently below
S&P's target ratio of 2.5x during 2008 (1.3x in the 12 months
ended July, 31, 2008).

ESCADA is responding with a major capital and management
reorganization, announced on June 24, 2008.  This initiative
includes the hiring of former Hugo Boss chief executive Bruno
Saelzer.  It also includes the acquisition by investors Wolfgang
and Michael Herz of a 25% minority interest in the company.  The
change of CEO, the second in just over a year, emphasizes the
difficulties the company faces in implementing its brand
repositioning strategy.

Even assuming that the new management team can successfully turn
round operating underperformance, free operating cash flow is
unlikely to revert to positive before the second half of fiscal
2009, when deliveries of the Fall/Winter 2009 collection start.
The operational recovery and brand repositioning require further
funds to invest in merchandising, marketing, shop refurbishment,
and restructuring.  This means that further support from the
shareholders is essential to improve the company's liquidity
position before the EUR90 million back-up bilateral credit
facility expires in December 2009.

"ESCADA's adequate funding should allow it to progress with the
planned operating turnaround," added Mr. Festa.  "However, if
management's efforts to achieve this turnaround over the coming
quarters fail to stabilize the company's profitability, we might
lower the ratings.  Ratings upside is unlikely, given ESCADA's
excessive leverage and challenging environment."


HELMRICH BAU GMBH: Claims Registration Period Ends October 7
------------------------------------------------------------
Creditors of Helmrich Bau GmbH have until Oct. 7, 2008, to
register their claims with court-appointed insolvency manager Dr.
Stefan Oppermann.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 21, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Bamberg
         Meeting Hall 031
         Synagogenplatz 1
         96047 Bamberg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Stefan Oppermann
         Aussere Sulzbacher Str. 118
         90491 Nuremberg
         Germany
         Tel: 0911/59890-0
         Fax: 091159890-11,12

The District Court of Bamberg opened bankruptcy proceedings
against Helmrich Bau GmbH on Sept. 3, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Helmrich Bau GmbH
         Hirschaider Str. 16
         96129 Strullendorf/Amlingstadt
         Germany


HORN IT: Claims Registration Period Ends October 7
--------------------------------------------------
Creditors of Horn IT Consulting GmbH have until Oct. 7, 2008, to
register their claims with court-appointed insolvency manager
Christian Hanken.

Creditors and other interested parties are encouraged to attend
the meeting at 3:00 p.m. on Oct. 28, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Oldenburg
         Meeting hall
         Second Floor
         Elisabethstrasse 6
         26135 Oldenburg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Christian Hanken
         Beethovenstrasse 3
         26135 Oldenburg
         Germany
         Tel: 0441 3611 9650
         Fax: 0441 3611 9659
         E-mail: christian.hanken@rechtsanwaelte-hanken.de

The District Court of Oldenburg opened bankruptcy proceedings
against Horn IT Consulting GmbH on Sept. 5, 2008.  Consequently,
all pending proceedings against the company have been
automatically stayed.

The Debtor can be reached at:

         Horn IT Consulting GmbH
         Cloppenburger Str. 446
         26133 Oldenburg
         Germany


HYPO REAL ESTATE: Secures New Funds, Won't Pay FY 2008 Dividends
----------------------------------------------------------------
Hypo Real Estate Group ("Hypo") said it has secured a major new
credit facility which is designed to shield the company from the
impact of the current malfunctioning of the international money
markets.

Hypo did not disclose the amount of the facility.

A consortium from the German financial sector has provided Hypo
Real Estate Holding AG, together with its subsidiaries DEPFA Bank
Plc, Hypo Real Estate Bank AG and Hypo Real Estate Bank
International AG with a multi-billion Euro short-term and mid-term
credit facility sufficient to cover the Group's funding needs well
into the future, Hypo said in a statement Monday.  According to
Hypo, it had entered into talks with the consortium in response to
the extremely challenging conditions on the international money
markets following the Lehman collapse and other market
disruptions.

Georg Funke, CEO of Hypo Real Estate Group, said: "The new credit
facility is a far-reaching and innovative approach which allows us
to adjust our funding structure in order to accommodate the
current malfunctioning of the international money markets.  Hypo
Real Estate Group will not need to go back to the unsecured money
market for its refunding in the foreseeable future."

As a consequence of the arrangement, Hypo Real Estate Holding AG
will have to impair the goodwill of its holding in DEPFA Bank Plc.
This impairment will have a significant material effect on the
Group's P&L statement.  The firm said a  dividend distribution for
the financial year 2008 is not expected.

                        Hypo Capital Loans

On September 24, Hypo said in a statement that Hypo Real Estate
Capital Corporation (HRECC), a member of Hypo Real Estate Group,
closed a US$130 million loan for 681 Fifth Avenue in New York.
The transaction closed on Aug. 19, 2008.

HRECC previously obtained a US$46 million pari-passu interest in a
US$121 million mortgage loan for the refinance of the
InterContinental Chicago.  The loan was originated by Citibank.
The transaction closed on July 3, 2008.

681 Fifth Avenue is located between 53rd and 54th Streets in the
Plaza District submarket of Manhattan.  Built in 1912 as a McKim,
Mead, and White building and currently undergoing a total
renovation, the 17 story Class A office and retail property
measures 82,500 net rentable square feet and includes a unique
penthouse with outdoor terraces and highly desirable views of
Central Park to the north and the Rockefeller Center and the
Empire State Building to the south.

In March of 2008, Tommy Hilfiger executed a 15-year lease for
22,500 square feet on the first four floors and two basement
levels.  The Tommy Hilfiger store will serve as the company's
global flagship store.  Tommy Hilfiger has previously announced
that the store is expected to open for the 2008 holiday season.

The sponsors of this deal are Robert Siegel and descendants of the
Hermès family. This is the first time Hypo Real Estate Capital
Corporation has worked with each of the sponsors.  RCG Longview
served as mezzanine lender, on this deal.

The Sponsors are also completing an entire renovation of all
building systems and the remaining 60,000 rentable square feet
will be available as Class A Office Space for occupancy by the end
of this year, which will be comprised of 6,000 square foot single
floor plates with 14 foot ceilings on each floor.  The Sponsors
have awarded Matthew Astrachan and Mitchell Konsker of Cushman &
Wakefield the exclusive brokerage contract for leasing the unique
office space at 681 Fifth Avenue.

Robert A. Siegel is the CEO of Metropole Realty Advisors, Inc.
Metropole's principals have focused on development, acquisition
and leasing of the most sought after luxury retail locations for
thirty years.

                        About Hypo Capital

Hypo Real Estate Capital Corporation, a subsidiary of Hypo Real
Estate Bank International AG, is one of the leading lenders in the
United States commercial real estate marketplace.  Hypo Real
Estate Capital provides innovative financial solutions for a
prestigious client base throughout the U.S.  Over the last five
years, the firm has closed more than US$22 billion of loans.
Headquartered in New York, Hypo Real Estate Capital is active in
all markets across the U.S.

                   About Hypo International AG

Hypo Real Estate Bank AG and Hypo Real Estate Bank International
AG, Munich, are leading providers of commercial real estate
financing on an international scale and in Germany.  The banks
offer their services to professional real estate investors,
building societies, and developers as well as closed and open
ended real estate funds globally through 20 offices across Europe,
the Americas and Asia.  The service and product range includes
classical Pfandbrief-based mortgages as well as large-volume
investment banking products.  Both banks are members of Hypo Real
Estate Group.  Following the acquisition of DEPFA Bank plc in
October 2007, the Group has evolved into one of the leading
international financial services providers for commercial real
estate, public sector and infrastructure finance.

                   About Hypo Real Estate Group

Following the acquisition of DEPFA Bank plc in October 2007,
Munich, Germany-based Hypo Real Estate Group –
http://www.hyporealestate.com/-- has evolved into one of the
leading international financial services providers for commercial
real estate lending, public finance and infrastructure finance.
The Group, with total assets of EUR395 billion, 1,900 employees
and offices across Europe, the Americas and Asia, consists of the
non-operational listed Hypo Real Estate Holding AG and operational
entities.  Hypo Real Estate Bank International AG and Hypo Real
Estate Bank AG conduct the international real estate financing
business.  DEPFA and DEPFA Deutsche Pfandbriefbank AG conduct the
public sector and infrastructure finance business.


ILYPSYS GMBH: Claims Registration Period Ends October 6
-------------------------------------------------------
Creditors of ilypsys GmbH have until Oct. 6, 2008, to register
their claims with court-appointed insolvency manager Carsten
Lange.

Creditors and other interested parties are encouraged to attend
the meeting at 10:20 a.m. on Nov. 5, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Aachen
         Meeting Hall D 1.409
         First Floor
         Adalbertsteinweg 92
         52070 Aachen
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Carsten Lange
         Laurentiusstrasse 16-20
         52072 Aachen
         Germany
         Tel: 024141344550
         Fax: 0241413445511

The District Court of Aachen opened bankruptcy proceedings against
ilypsys GmbH on Aug. 19, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         ilypsys GmbH
         Attn: Dr. Wolfgang Adolf Engert
               and Hans-Joerg Engert, Managers
         Schloss-Rahe-Str. 15
         52072 Aachen
         Germany


K & D KOMMUNIKATION: Claims Registration Period Ends October 7
--------------------------------------------------------------
Creditors of K & D Kommunikation und Design GmbH have until
Oct. 7, 2008, to register their claims with court-appointed
insolvency manager Knut Thomas Hofheinz.

Creditors and other interested parties are encouraged to attend
the meeting at 8:15 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hannover
         Hall 226
         Second Upper Floor
         Service Bldg.
         Hamburger Allee 26
         30161 Hannover
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Knut Thomas Hofheinz
         Am Markte 13
         30159 Hannover
         Germany
         Tel: 0511 326099
         Fax: 0511 320255

The District Court of Hannover opened bankruptcy proceedings
against K & D Kommunikation und Design GmbH on Aug. 28, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         K & D Kommunikation und Design GmbH
         Ferdinandstrasse 11/12
         30175 Hannover
         Germany


KBK KRONBERGER: Claims Registration Period Ends October 2
---------------------------------------------------------
Creditors of KBK Kronberger Baukontor GmbH have until Oct. 2,
2008, to register their claims with court-appointed insolvency
manager Andre K. Gabel.

Creditors and other interested parties are encouraged to attend
the meeting at 9:20 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Andre K. Gabel
         Carl-Theodor-Reiffenstein-Platz 6
         D 60313 Frankfurt/Main
         Germany
         Tel: 069/138228290
         Fax: 069/138228299

The District Court of Frankfurt/Main opened bankruptcy proceedings
against KBK Kronberger Baukontor GmbH on
Aug. 18, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         KBK Kronberger Baukontor GmbH
         Attn: Hans-Joachim Templin, Manager
         Darmstaedter Landstrasse 302
         60598 Frankfurt am Main
         Germany


KIPA PLANUNG: Claims Registration Period Ends October 2
-------------------------------------------------------
Creditors of KIPA Planung und Vertriebs GmbH have until
Oct. 2, 2008, to register their claims with court-appointed
insolvency manager Jochen Koenner.

Creditors and other interested parties are encouraged to attend
the meeting at 8:20 a.m. on Oct. 23, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Landshut
         Meeting Room 8/I
         Insolvency Court
         Maximilianstrasse 22-24
         Landshut
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Jochen Koenner
         Papiererstr. 18
         84034 Landshut
         Germany
         Tel: 0871/96270-0
         Fax: 0871/96270-77

The District Court of Landshut opened bankruptcy proceedings
against KIPA Planung und Vertriebs GmbH on Sept. 3, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         KIPA Planung und Vertriebs GmbH
         Attn: Robert Kick, Manager
         Ulmenstr. 23
         84051 Essenbach
         Germany


KOERNERSTRASSE PERSONALDIENSTLEISTUNGEN: Claims End Oct. 2
----------------------------------------------------------
Creditors of Koernerstrasse Personaldienstleistungen GmbH have
until Oct. 2, 2008, to register their claims with court-appointed
insolvency manager Burckhardt Reimer.

Creditors and other interested parties are encouraged to attend
the meeting at 11:45 a.m. on Nov. 11, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Hamburg
         Hall B 405
         Fourth Floor Annex
         Civil Justice Bldg.
         Sievkingplatz 1
         20355 Hamburg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Burckhardt Reimer
         Domstrasse 15
         20095 Hamburg
         Germany

The District Court of Hamburg opened bankruptcy proceedings
against Koernerstrasse Personaldienstleistungen GmbH on
Sept. 1, 2008.  Consequently, all pending proceedings against the
company have been automatically stayed.

The Debtor can be reached at:

         Koernerstrasse Personaldienstleistungen GmbH
         Dieter E. Kannegieter, Liquidator
         Koernerstrasse 18
         22301 Hamburg
         Germany


LEHMAN BROTHERS: Legal Hurdles in Sale of German Unit Likely
------------------------------------------------------------
Nomura Holdings Inc. may face legal hurdles in its planned
acquisition of Lehman Brothers Holdings Inc.'s German operations,
Nadja Brandt of Bloomberg News said early last week, citing the
Financial Times.

The report says Bafin, Germany's financial regulator, ordered a
six-week moratorium for Lehman Brothers Bankhaus AG, which is
responsible for refinancing in Germany.

According to the report, a buyer cannot split the German operation
unless the unit files for bankruptcy.

As reported by the Troubled Company Reporter on Sept. 24, 2008,
Nomura Holdings Inc. had reached an agreement to acquire the
European and Middle Eastern equities and investment banking
operations of Lehman Brothers Holdings Inc.

The acquisition will provide Nomura with a market leading equities
and investment banking platform in the region and further enhance
Nomura's strategy of connecting Asia and Europe.  The deal follows
Nomura's agreement on Sept. 22, 2008, to acquire Lehman Brothers'
entire franchise in the Asia Pacific region including Japan and
Australia.

Lehman's equities and investment banking businesses in Europe and
the Middle East employed around 2,500 staff, of whom a significant
proportion are expected to be retained.

                           About Nomura

Nomura Holdings Inc. -- http://www.nomura.com/-- is a financial
services group and the pre-eminent Asian-based investment bank
with worldwide reach.  Nomura provides a broad range of innovative
solutions tailored to the specific requirements of individual,
institutional, corporate and government clients through an
international network in 30 countries.  Based in Tokyo and with
regional headquarters in Hong Kong, London, and New York, Nomura
employs about 18,000 staff worldwide.  Nomura's unique
understanding of Asia enables the company to make a difference for
clients through five business divisions: domestic retail, global
markets, global investment banking, global merchant banking, and
asset management.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LMO GMBH: Claims Registration Period Ends October 6
---------------------------------------------------
Creditors of LMO GmbH have until Oct. 6, 2008, to register their
claims with court-appointed insolvency manager Dr. Romy Metzger.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Nov. 6, 2008, at which time the
insolvency manager will present herfirst report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Erfurt
         Hall 12
         Rudolfstr. 46
         99092 Erfurt
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Romy Metzger
         Steigerstr. 30
         99096 Erfurt
         Germany

The District Court of Erfurt opened bankruptcy proceedings against
LMO GmbH on Sept. 10, 2008.  Consequently, all pending proceedings
against the company have been automatically stayed.

The Debtor can be reached at:

         LMO GmbH
         Boyneburgufer 5
         99089 Erfurt
         Germany


MARC IMMOBILIEN: Claims Registration Period Ends October 2
----------------------------------------------------------
Creditors of MARC Immobilien Beratungs- und Betreuungs- GmbH
Hohenwarsleben have until Oct. 2, 2008, to register their claims
with court-appointed insolvency manager Heiko Rautmann.

Creditors and other interested parties are encouraged to attend
the meeting at 9:50 a.m. on Nov. 6, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Magdeburg
         Hall 13
         Breiter Weg 203 - 206
         39104 Magdeburg
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Heiko Rautmann
         Editharing 31
         39108 Magdeburg
         Germany
         Tel: 0391/5066030
         Fax: 0391/5066033
         E-mail: Heiko.Rautmann@gmx.de

The District Court of Magdeburg opened bankruptcy proceedings
against MARC Immobilien Beratungs- und Betreuungs- GmbH
Hohenwarsleben on Aug. 18, 2008.  Consequently, all pending
proceedings against the company have been automatically stayed.

The Debtor can be reached at:

         MARC Immobilien Beratungs- und
         Betreuungs- GmbH Hohenwarsleben
         Berliner Allee 2
         39326 Hohenwarsleben
         Germany

         Joerg Peter Landmann, Manager
         Fischerufer 1c
         39326 Wolmirstedt
         Germany


MOEBELHOF WELLSEE: Claims Registration Period Ends October 7
------------------------------------------------------------
Creditors of Moebelhof Wellsee GmbH have until Oct. 7, 2008, to
register their claims with court-appointed insolvency manager Dr.
Silke Wehdeking.

Creditors and other interested parties are encouraged to attend
the meeting at 11:00 a.m. on Oct. 28, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Kiel
         Hall 17
         Deliusstr. 22
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Silke Wehdeking
         Holstenstrasse 22
         24103 Kiel
         Germany
         Tel: 0431/2403500
         Fax: 0431/2403501

The District Court of Kiel opened bankruptcy proceedings against
Moebelhof Wellsee GmbH on Sept. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Moebelhof Wellsee GmbH
         Segeberger Landstr. 140
         24145 Kiel
         Germany


NEUROPROGEN GMBH: Claims Registration Period Ends Oct. 6
--------------------------------------------------------
Creditors of NeuroProgen GmbH have until Oct. 6, 2008, to register
their claims with court-appointed insolvency manager Dr. Dirk
Herzig.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 3, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Leipzig
         Hall 145
         Ground Floor
         Enforcement Court
         Bernhard Goering Strasse 64
         04275 Leipzig
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Dr. Dirk Herzig
         Inselstrasse 29
         04103 Leipzig
         Germany
         Tel: 0341-269720
         Fax: 0341-2697210

The District Court of Leipzig opened bankruptcy proceedings
against NeuroProgen GmbH on Aug. 15, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         NeuroProgen GmbH
         Attn: Christian Schafer, Manager
         Deutscher Platz 5c
         04103 Leipzig
         Germany


SCHUH-SHOP MODE: Claims Registration Period Ends October 7
----------------------------------------------------------
Creditors of Schuh-Shop Mode GmbH have until Oct. 7, 2008, to
register their claims with court-appointed insolvency manager
Peter Depre.

Creditors and other interested parties are encouraged to attend
the meeting at 10:00 a.m. on Nov. 18, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Karlsruhe
         Hall IV
         First Floor
         Schlossplatz 23
         76131 Karlsruhe
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Peter Depre
         O 4, 13-16
         68161 Mannheim
         Germany
         Tel: (0621) 1207 80

The District Court of Karlsruhe opened bankruptcy proceedings
against Schuh-Shop Mode GmbH on Aug, 21, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         Schuh-Shop Mode GmbH
         Karlstrasse 40
         76133 Karlsruhe
         Germany


SIM ELEKTROTECHNIK: Claims Registration Period Ends October 2
-------------------------------------------------------------
Creditors of SIM Elektrotechnik GmbH have until Oct. 2, 2008, to
register their claims with court-appointed insolvency manager
Michael Bleek.

Creditors and other interested parties are encouraged to attend
the meeting at 10:30 a.m. on Nov. 4, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Gera
         Room 317
         Rudolf-Diener-Str. 1
         Gera
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Michael Bleek
         Grosse Allee 1a
         07407 Rudolstadt
         Germany

The District Court of Gera opened bankruptcy proceedings against
SIM Elektrotechnik GmbH on Sept. 1, 2008.  Consequently, all
pending proceedings against the company have been automatically
stayed.

The Debtor can be reached at:

         SIM Elektrotechnik GmbH
         Attn: Ingbert Oehler, Manager
         Geraer Strasse 44
         07819 Triptis
         Germany


TECHNOLOGIE-FONDS MANAGEMENT: Claims Registration Ends Oct. 2
-------------------------------------------------------------
Creditors of TFG Technologie-Fonds Management GmbH have until
Oct. 2, 2008, to register their claims with court-appointed
insolvency manager Johann-Wolfgang Posselt.

Creditors and other interested parties are encouraged to attend
the meeting at 9:30 a.m. on Dec. 2, 2008, at which time the
insolvency manager will present his first report on the insolvency
proceedings.

The meeting of creditors will be held at:

         The District Court of Frankfurt/Main
         Hall 2
         Building F
         Klingerstrasse 20
         60313 Frankfurt/Main
         Germany

The Court will also verify the claims set out in the insolvency
manager's report during this meeting, while creditors may
constitute a creditors' committee or opt to appoint a new
insolvency manager.

The insolvency manager can be reached at:

         Johann-Wolfgang Posselt
         Kurhessenstrasse 1-3
         60431 Frankfurt am Main
         Germany

The District Court of Frankfurt/Main opened bankruptcy proceedings
against TFG Technologie-Fonds Management GmbH on Aug. 21, 2008.
Consequently, all pending proceedings against the company have
been automatically stayed.

The Debtor can be reached at:

         TFG Technologie-Fonds Management GmbH
         Kurhessenstrasse 1-3
         60431 Frankfurt am Main
         Germany


===========
G R E E C E
===========


OLYMPIC: Privatizations Committee Starts Bidding Process
--------------------------------------------------------
George Hatzidakis, George Georgiopoulos and Simon Jessop of
Reuters report that a tender to find buyers for three new
companies to replace Olympic Airlines S.A. has been given the go-
ahead by the Greece's privatizations committee after the European
Commission approved the plan of the Greece's conservative
government to break the airline.  The Commission, the report adds,
also ordered Olympic to repay EUR850 million in illegal state aid
received between 2005-2007.  However, Greek officials warned most
of this is unlikely to be returned.

The Greek government, the report says, seeks to fully privatize
Olympic Airlines, which had accumulated debts of EUR2 billion as
of last year.

"We are moving to rid citizens of the burden of Olympic Airlines
... a burden that costs Greek taxpayers millions of euros each
day," Prime Minister Costas Karamanlis said at a party conference
on Friday.

According to the report, divisions covering flights, ground
handling, and maintenance would be sold to investors by 2009.  No
bidders have emerged so far.

"Competitive procedures to choose private investors to buy the
three companies -- flying, ground handling and aircraft
maintenance -- will start," Greece's privatisations committee said
in a statement.  "The procedures will proceed as planned."

The new airline will retain Olympic's name and trademark, the
report notes.

Meanwhile, Transport Minister Kostis Hatzidakis on Thursday put
forward amendments to a bill in parliament that would allow
Olympic to be placed under a "special liquidation status,"
offering the carrier protection from creditors, the report
relates.

Under the plan, Olympic will continue to fly until owners for the
new company are found, while its 8,000 employees would be
redeployed at government agencies or compensated.

Unions however turned down invitation for talks and called a
strike tomorrow, Oct. 1, the report states.

                     About Olympic Airlines

Headquartered in Athens, Olympic Airlines S.A. --
http://www.olympicairlines.com/-- the holding company of the
Olympic Airways group of companies, flies passengers and cargo
to five continents, while offering ground handling, technical
maintenance and information technology services to third
parties.

Between 1994 and 2000, the European Commission allowed Greek
state aids for the restructuring of Olympic Airways.  In
December 2002, the Commission found that further aid had been
granted to the airline, and demanded that EUR160 million be
repaid.

Greece created Olympic Airlines in December 2003 from the
remaining assets of bankrupt and defunct national carrier
Olympic Airways S.A.  Olympic Airlines started operations in
2004 and posted EUR87 million in net losses.  The carrier posted
EUR123.7 million in net losses in 2005.


=========
I T A L Y
=========


ALITALIA SPA: CAI Revives Bid, Mulls Tie-Up With Foreign Carriers
-----------------------------------------------------------------
Compagnia Aerea Italiana s.r.l., an investor group formed to save
Alitalia SpA, is considering selling a minority stake to either
Air France-KLM or Lufthansa and launching the new Alitalia by
November 1, various reports say.

CAI can now move on its rescue plan after it reached agreement on
new labor contracts and redundancies with two more pilots' unions
in the early hours of Saturday, The Financial Times reports.

According to the FT, pilots agreed to cut their salaries by 6% to
7% and reduce their holidays from 42 days to 30 days.  In return,
the FT says CAI agreed to reduce the number of lay-offs from 1,000
to 860 by taking on 140 pilots part-time.

Meanwhile, CAI's offer of some EUR400 million (US$584 million) for
Alitalia's healthy assets is still being evaluated by Augusto
Fantozzi, the lossmaking flag carrier's special administrator, and
independent advisers, the FT relates.

On Sept. 22, 2008, the Troubled Company Reporter-Europe reported
that CAI withdrew its bid to buy Alitalia's healthier assets after
failing to win the support of  labor unions.

After CAI's withdrawal, Alitalia proceeded with its fourth public
request for offers to buy any or all parts of the company's assets
until today, Sept. 30, 2008.  The carrier has published notices in
the Italian newspapers Corriere della Sera, il Sole-24 Ore and la
Repubblica, as well as the London-based Financial Times, according
to The Associated Press.

In the prepared notice cited by The AP, Alitalia is seeking
"whoever might be able to guarantee the continuity, in the medium
term, of the transportation service ... to submit its expression
of interest."

                     Unions Reject CAI's Offer

A TCR-Europe report on Sept. 10, 2008, said Alitalia's unions
rejected the employment contract proposed by CAI.  CAI then
proposed among others that pilots' vacation be reduced from 42 to
30 days a year, with extra day off for every five years of service
in the company; and attendants' fixed salary be reduced by 43%
while their variable salary will be reduced by 28%-31%.  Unions
described the proposal as "worst, unfeasible, and not viable,"
following a meeting with the Italian government, Alitalia and CAI.

At that time, only three of the carrier's nine unions accepted the
terms of CAI's rescue plan.

Bloomberg News reported that on September 14, the airline's four
biggest unions won an agreement from CAI to include 1,000 more
workers in the rescue plan.  However, on September 18, CGIL, one
of the four largest unions, joined the remaining five unions in
pushing for more concessions, says the report.

The airline is now running on just EUR30 million (US$42.5 million)
to EUR50 million in cash, and loses between EUR1 million and EUR2
million every day, The Wall Street Journal says.  Alitalia Special
Administrator Augusto Fantozzi has said the airline will use part
of its remaining cash to fund this month's payroll which is due
Sept. 27, 2008.

Moves to save the state-controlled airline became clear after the
Italian government amended its bankruptcy law to hasten the sale
of its 49.9% stake in Alitalia and it turn around, a TCR-Europe
report on Sept. 1, 2008, said.

Under Intesa Sanpaolo S.p.A.'s "Phoenix" rescue plan, Italy
government amended the Marzano Law, which was used to reorganize
Parmalat.  The government tapped Intesa Sanpaolo as adviser for
the sale of its 49.9% stake in Alitalia.

The amended law allowed Alitalia to be split into two -- an oldco
and a newco.  The oldco will shoulder the cost of the planned
5,000-7,000 job cuts and take on Alitalia's EUR1.1 billion debt --
including the recent EUR300 million loan from the government and a
EUR750 million convertible bond.  The government will place the
oldco under extraordinary administration and appoint an
extraordinary commissioner to oversee the sale of unprofitable
assets.

The law also allowed Alitalia's extraordinary commissioner to sell
its assets through private talks and without holding public
auction.

The newco, meanwhile, will inherit Alitalia's fleet and real
estate assets as well as the remaining employees and up to EUR500
million in debt.  It would receive around EUR300 million in assets
from AirOne S.p.A., which would be folded under the newco.  AirOne
leads a group of 16 local investors who pledged to inject around
EUR1 billion into the newco in exchange for shares.

                          About Alitalia

Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina.  The
Italian government owns 49.9% of Alitalia.

Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively.  Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.

Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed
for commencement of extraordinary administration procedure at the
Tribunal of Rome.  Italian Prime Minister Silvio Berlusconi has
appointed Augusto Fantozzi as extraordinary commissioner.


TELECOM ITALIA: Libyan Fund Offers EUR4BB Investment in Holding Co
------------------------------------------------------------------
Sovereign fund Libyan Investment Authority, or LIA, offered as
much as EUR4 billion (US$5.88 billion) for about 10% of Telco, the
controlling shareholder of ailing Telecom Italia SpA, The Wall
Street Journal reports citing a person familiar with the matter.

WSJ says LIA's offer follows Italian Prime Minister Silvio
Berlusconi's recent meeting with Libyan leader Col. Moammar
Gadhafi wherein Mr. Berlusconi committed Italy to investing US$5
billion in Libya's infrastructure as compensation for occupying
the area that is now Libya from 1911 to 1943.

As reported in the Troubled Company Reporter-Europe on Sept. 24,
2008, Telecom Italia agreed with unions to remove 5,000 out of its
83,000 employees as part of a restructuring plan.  Dow Jones
Newswires said Telecom Italia in June unveiled a cost-cutting plan
aimed at reducing annual costs by roughly EUR300 million.  The
company is also looking to sell its assets amid stiffening
competition and regulatory pressures.

Telecom Italia has EUR37 billion (US$52.53 billion) in long-term
debt and its share price has fallen by more than half since Telco
took control of the company in April 2007.

Based in Milan, Italy, Telecom Italia S.p.A. --
http://www.telecomitalia.it/-- (NYSE:TI) is a telecommunications
group that operates in the communications sector, in the
television sector using both analog and digital terrestrial
technology, and in the office products sector.  The company is
engaged principally in the communications sector and,
particularly, in telephone and data services on fixed lines, for
final retail customers and wholesale providers, in the development
of fiber optic networks for wholesale customers, in Internet
services, in domestic and international mobile telecommunications
(especially in Brazil), in the television sector using both analog
and digital terrestrial technology and in the office products
sector.  The company operates mainly in Europe, the Mediterranean
Basin and in South America.  In August 2008, ILIAD SA announced
that it had finalized the acquisition of Alice France, the
broadband operations of the company.


===================
K A Z A K H S T A N
===================


ALTYN SAGAT: Creditors Must File Claims by November 12
------------------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Altyn Sagat insolvent.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Office 105
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-83-69


AREVA T&D: Claims Deadline Slated for November 11
-------------------------------------------------
LLP Representation of Company Areva T&D SA has declared
liquidation.  Creditors have until Nov. 11, 2008, to submit
written proofs of claims to:

         LLP Representation of Company Areva T&D SA
         Shevchenko Str. 157
         Almaty
         Kazakhstan


AVIA TRANS: Claims Filing Period Ends November 12
-------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Avia Trans Service Ltd. insolvent on
Aug. 1, 2008.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Skorobogatov Str. 93
         Uralsk
         West Kazakhstan
         Kazakhstan
         Tel: 8 (7112) 54-37-93


KULANDY ENERGY: Creditors' Claims Due on November 12
----------------------------------------------------
LLP Kulandy Energy Corporation has declared liquidation.
Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         LLP Kulandy Energy Corporation
         Office 307
         Tole bi Str. 295
         Almaty
         Kazakhstan
         Tel: 8 (7272) 44-54-96
              8 (7272) 27-31-15


RELKOM SL: Claims Registration Ends November 12
-----------------------------------------------
The Specialized Inter-Regional Economic Court of East Kazakhstan
has declared LLP Relkom SL insolvent.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of East Kazakhstan
         Office 105
         Myzy Str. 2/1
         Ust-Kamenogorsk
         East Kazakhstan
         Kazakhstan
         Tel: 8 (7232) 57-83-69


STROYMASTER-IV LLP: Creditors Must File Claims by November 12
-------------------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Construction Company Stroymaster-IV insolvent.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


SVYAZ LLP: Creditors Must File Claims by November 12
----------------------------------------------------
The Specialized Inter-Regional Economic Court of West Kazakhstan
has declared LLP Construction-Building Plot Svyaz insolvent on
July 27, 2008.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of West Kazakhstan
         Skorobogatov Str. 93
         Uralsk
         West Kazakhstan
         Kazakhstan
         Tel: 8 (7112) 54-37-93


TECH STROY: Claims Filing Period Ends November 12
-------------------------------------------------
The Specialized Inter-Regional Economic Court of Aktube has
declared LLP Construction Company Tech Stroy Plus insolvent.

Creditors have until Nov. 12, 2008, to submit written proofs of
claims to:

         The Specialized Inter-Regional
         Economic Court of Aktube
         Altynsarin Str. 31
         Aktobe
         Aktube
         Kazakhstan


U.K. HOLDINGS: Creditors' Claims Due on November 11
---------------------------------------------------
LLP U.K. HOLDINGS has declared liquidation.  Creditors have until
Nov. 11, 2008, to submit written proofs of claims to:

         LLP U.K. HOLDINGS
         Office 2
         Egizbayev Str. 7
         Almaty
         Kazakhstan


UNIVERSAL OIL: Claims Registration Ends November 12
---------------------------------------------------
LLP Holding Company United Universal Holding has gone into
liquidation.  Creditors have until Nov. 12, 2008, to submit
written proofs of claims to:

         LLP Holding Company United Universal Holding
         Office 307
         Tole bi Str. 295
         Almaty
         Kazakhstan
         Tel: 8 (7272) 44-54-96
              8 (7272) 27-31-15


===================
K Y R G Y Z S T A N
===================


FIRST LEADER: Creditors Must File Claims by November 3
------------------------------------------------------
Kyrgyz-American LLC First Leader Kyrgyzstan has shut down.
Creditors have until Nov. 3, 2008, to submit written proofs of
claim to:

         Kyrgyz-American LLC First Leader Kyrgyzstan
         Free Economic Zone "Bishkek"
         Bishkek
         Kyrgyzstan
         Tel: (0-555) 10-50-95


=================
M A C E D O N I A
=================


PROCREDIT BANK: Fitch Affirms Individual Rating at 'D/E'
--------------------------------------------------------
Fitch Ratings has affirmed ProCredit Bank Macedonia's ratings at
Long- term foreign and local currency Issuer Default 'BB+' with
Stable Outlook, Short-term foreign and local currency IDR 'B',
Individual 'D/E', and Support '3'.

The IDRs and Support ratings reflect the moderate potential
support available from its owners, in particular, ProCredit
Holding AG (PCH, rated 'BBB-'/Outlook Stable) in case of need.
The IDR and Support Ratings also reflect PCM's integration with
the ProCredit group, including in centralized control and risk
management.  The Stable Outlook reflects that of PCH.

The Individual rating reflects PCM's small size and tight
capitalization, given the credit and operational risks associated
with its growth and scale.  The bank continues to expand, but
growth appears to have been prudently managed and is expected to
slow down.  While moderate, profitability continues to benefit
from favorable operating conditions and the bank's improving
scale.  However, rapid growth and the lack of business scale mean
that efficiency ratios are still weak.  Margins remain wide but
are under pressure due to a change in the bank's funding mix and
rising competition.

Lending is well-diversified by customer and arrears have been low
to date.  While loan impairment cover of current arrears is good,
this needs to be seen in the context of both the credit and
operational risks associated with its rapid growth.  Core capital
levels are also low; ongoing expansion plans mean levels will
continue to be tight and new capital will be required.  PCH has
been willing to provide this thus far.

PCM started operations in 2003 and received a full banking license
in 2004.  It is part of a global network of 22 banks set up to
finance micro-businesses and small and medium-sized enterprise
customers in developing markets.  It is the fifth-largest bank in
Macedonia, with an approximate 5.6% share of sector assets.  PCH
is the largest owner with a 87.5% share in PCM.


=====================
N E T H E R L A N D S
=====================


EURAMAX INTERNATIONAL: Moody's Reviews Ratings for Possible Cut
--------------------------------------------------------------
Moody's Investors Service placed the ratings of Euramax
International, Inc. under review for possible downgrade.  Moody's
believes that the risk of financial covenant violations in 2008
has heightened due to growing softness in the company's end-
markets, particularly within its European operations and building
products segment.  Moody's believes these markets will continue to
soften into 2009.  As a result, the company's access to its
revolving credit facility may be limited by financial covenant
challenges.  Specifically, the company's maximum leverage ratio
begins to step down in the third quarter of 2008 and further
tightens into 2009.

In order to fully consider these matters, Moody's will look to
clarify and review 1) the third quarter operating results and 2009
business outlook, 2) the likelihood of covenant compliance over
the near term and the company's ability to re-negotiate financial
covenants with its lenders, if necessary, and 3) the financial
strategy of the company's sponsor.  Moody's expects this review to
be completed within 45 days.

Ratings Under Review:

Issuer: Euramax International, Inc.

-- Corporate Family Rating, B2
-- First Lien Sr. Secured Term Loan, B1 (LGD3, 34%)
-- First Lien Sr. Secured Revolver, B1 (LGD3, 34%)
-- Second Lien Sr, Secured Term Loan, Caa1 (LGD5, 81%)
-- Outlook, Changed To Review for Possible Downgrade From
    Negative

Issuer: Euramax Netherlands B.V.

-- First Lien Sr. Secured Term Loan, B1 (LGD3, 34%)
-- First Lien Sr. Secured Revolver, B1 (LGD3, 34%)
-- Outlook, Changed To Review for Possible Downgrade From
    Negative

Headquartered in Norcross, Georgia, Euramax International Inc. is
an international producer of value-added aluminum, steel, vinyl
and fiberglass products.


EUROSAIL-NL 2007-1: Fitch Puts BB-Rated Notes on Watch Negative
---------------------------------------------------------------
Fitch Ratings has placed four Dutch RMBS transactions on Rating
Watch Negative following the downgrade of Lehman Brothers Holdings
Inc.  EMF-NL 2008-1 B.V., EMF-NL Prime 2008-A B.V., Eurosail-NL
2007-1 B.V. and Eurosail-NL 2007-2 B.V. have counterparty exposure
to LBHI or its subsidiaries on multiple levels.  The potential
combined affect of these counterparties could result in multi-
category downgrades to the transactions if the counterparties are
not replaced or, depending on the cost and terms agreed for their
replacement, more limited downgrades.

The counterparty exposure to each transaction is as:

EMF-NL 2008-1 B.V.
  -- Liquidity Facility Provider (Lehman Brothers Bankhaus A.G.)

  -- Fixed/Floating Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Basis Rate Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Interest Rate Cap Counterparty (Lehman Brothers Special
     Financing, Inc.)

EMF-NL Prime 2008-A B.V.
  -- Liquidity Facility Provider (Lehman Brothers Bankhaus A.G.)

  -- Fixed/Floating Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Basis Rate Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Interest Rate Cap Counterparty (Lehman Brothers Special
     Financing, Inc.)

Eurosail-NL 2007-1 B.V.
  -- Fixed/Floating Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Basis Rate Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Interest Rate Cap Counterparty (Lehman Brothers Special
     Financing, Inc.)

Eurosail-NL 2007-2 B.V.
  -- Fixed/Floating Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Basis Rate Swap Counterparty (Lehman Brothers Special
     Financing, Inc.)

  -- Interest Rate Cap Counterparty (Lehman Brothers Special
     Financing, Inc.)

In addition to direct counterparty exposure, the transactions are
all serviced by ELQ Hypotheken N.V., a subsidiary of Lehman
Brothers International (Europe).  ELQ is not part of the
bankruptcy estate of Lehman Brothers and at present continues to
service the loans; however, the agency will take into account the
potential effect on servicing when resolving the RWN.

Furthermore, early performance data for the transactions indicates
worse collateral performance than the agency's initial
expectations.  This could in itself result in downgrades to
selected tranches and means that any increased cost in replacing
counterparties could have a greater effect on rating downgrades.

The affected tranches are:

EMF-NL 2008-1 B.V.
  -- Class A1 (ISIN XS0352314719) 'AAA'; On Rating Watch Negative
  -- Class A2 (ISIN XS0352315526) 'AAA'; On Rating Watch Negative
  -- Class A3 (ISIN XS0359127387) 'AAA'; On Rating Watch Negative

EMF-NL Prime 2008-A B.V.
  -- Class A1 (ISIN XS0362459215) 'AAA'; On Rating Watch Negative
  -- Class A2 (ISIN XS0362465535) 'AAA'; On Rating Watch Negative
  -- Class A3 (ISIN XS0362465881) 'AAA'; On Rating Watch Negative
  -- Class B (ISIN XS0362466186) 'AA'; On Rating Watch Negative
  -- Class C (ISIN XS0362466269) 'A'; On Rating Watch Negative
  -- Class D (ISIN XS0362466772) 'BBB-'; On Rating Watch Negative

Eurosail-NL 2007-1 B.V.
  -- Class A (ISIN XS0307254259) 'AAA' on Rating Watch Negative
  -- Class B (ISIN XS0307256114) 'AA' on Rating Watch Negative
  -- Class C (ISIN XS0307257435) 'A' on Rating Watch Negative
  -- Class D (ISIN XS0307260496) 'BBB-' on Rating Watch Negative
  -- Class E1 (ISIN XS0307265370) 'BB' on Rating Watch Negative
  -- Class ET (ISIN XS0307265883) 'BB' on Rating Watch Negative

Eurosail-NL 2007-2 B.V.
  -- Class A (ISIN XS0327216569) 'AAA' on Rating Watch Negative
  -- Class M (ISIN XS0330526772) 'AAA' on Rating Watch Negative
  -- Class B (ISIN XS0327217880) 'AA-' on Rating Watch Negative
  -- Class C (ISIN XS0327218425) 'A' on Rating Watch Negative
  -- Class D1 (ISIN XS0327219159) 'BBB' on Rating Watch Negative
  -- Class DT (ISIN XS0327219746) 'BBB' on Rating Watch Negative

The RWN reflects the risk that LBHI or its subsidiaries will be
unable to meet part or all of their obligations, leaving the
issuer with increased exposure to the risks the swaps were
designed to hedge.  Fitch aims to resolve the RWN once information
is obtained regarding replacement counterparties.

Fitch is continuing to assess all the other European RMBS
transactions as detailed in Fitch's comment of 16 September,
'Fitch Assessing Lehman Counterparty Exposure in 31 European RMBS
Transactions'.  Further commentary or rating actions will take
place as warranted.


===========
N O R W A Y
===========


BLUEWATER INSURANCE: S&P Affirms BB+ Counterparty Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB+' long-
term counterparty credit and insurer financial strength ratings on
Norway-based nonlife insurer Bluewater Insurance ASA.  The outlook
is stable.  At the same time, the ratings were withdrawn at the
company's request following its decision to completely exit the
marine insurance sector.  Consequently, Bluewater is no longer
subject to surveillance by S&P.

"The affirmation took into account Bluewater's weak underwriting
risk controls, the challenges it faces in building sustainable
earnings, and its marginal competitive position," said S&P's
credit analyst Ali Karakuyu.  "In particular, we considered the
company's short track record in the nonmarine sector, which would
make it difficult to establish a sustainable competitive
position."

These factors are offset by the company's good risk-based capital
adequacy level, which results from its reduction of premium
volumes and lowering of its risk profile.


===========
P O L A N D
===========


CLAIRE'S STORES: Moody's Confirms PD Rating at 'Caa1'
-----------------------------------------------------
Moody's Investors Service confirmed Claire's Stores, Inc., long
term ratings, including its probability of default rating at Caa1.
In addition, Moody's affirmed Claire's speculative grade liquidity
rating at SGL-4.  The rating outlook is negative.  The
confirmation reflects Moody's view that the Caa1 appropriately
reflects higher-than-average probability of default over the near
to medium term, given what Moody's views as an overleveraged and
unsustainable capital structure.  It also reflects the view that
the company will be able to fund its free cash flow deficits with
excess cash over the next twelve months, providing it some time in
order to improve operating performance.

In addition, given the reduction in capital expenditures,
improvements in working capital, and the company's election to
defer paying cash interest on a portion of its debt, the
confirmation reflects that Claire's is not likely to need to
utilize its revolving credit facility over the next twelve months.

Claire's Caa1 corporate family rating is primarily driven by the
company's very weak credit metrics as a result of its heavy debt
load and its weak operating performance.  The rating also
considers the company's concentration in specialty retail, the
current challenging economic environment, and the likelihood of
the company continuing to generate free cash flow deficits.
Positive ratings consideration is given to the fact that there are
no near-term scheduled debt maturities, and the fact that Claire's
revolving credit facility has no financial covenants.

The negative outlook reflects the risk Claire's faces that it will
be unable to support its capital structure without stabilizing its
free cash flow deficit and improving its operating performance
over the medium term.

The SGL-4 reflects Claire's weak liquidity primarily driven by its
continued free cash flow deficits.  While Claire's will likely be
able to finance its level of free cash flow deficits with excess
cash over the next twelve months, a further weakening in operating
results and/or working capital changes during the next twelve
months could rapidly absorb this excess cash cushion.  In
addition, Claire's ability to finance its free cash flow deficits
is driven by the fact that it is able to defer paying a portion of
its interest expense in cash.  The company currently has adequate
external liquidity provided by a covenant free US$200 million
revolving credit facility.  The revolving credit facility is only
expected to be utilized for about US$6 million of letters of
credit, leaving US$194 million available and has no financial
covenants.

These ratings are confirmed:

-- Corporate family rating at Caa1;
-- Probability of default rating at Caa1;
-- US$200 million senior secured revolving credit facility at B2
    (LGD3; 32%);

-- US$1,450 million senior secured term loan to B2 (LGD3, 32%);
-- Senior unsecured notes at Caa2 (LGD4, 67%);
-- Senior subordinated notes at Caa3(LGD6, 93%).

This rating is affirmed:

-- Speculative grade liquidity rating at SGL-4.

Claire's Stores, Inc., headquartered in Pembroke Pines, Florida,
is the leading specialty retailer of value-price jewelry and
fashion accessories for pre-teens, teenagers, and young adults.
It operates 3,053 stores in North America and Europe.  Revenues
for the fiscal year ended LTM period ending August 2, 2008 were
about US$1.5 billion.


SCO GROUP: July 31 Balance Sheet Upside-Down by US$3.2 Million
------------------------------------------------------------
The SCO Group Inc.'s balance sheet at July 31, 2008, showed total
assets of US$9,522,000 and total liabilities of US$12,740,000,
resulting in a shareholders' deficit of US$3,218,000.

The company reported that net loss for three months ended July 31,
2008, was US$4,071,000 compared to net loss of US$2,511,000 for
the same period in the previous year.

Net loss for nine month ended July 31, 2008, was US$5,493,000
compared to net loss of US$4,839,000 for the same period in the
previous year.

                 Liquidity and Capital Resources

The company's cash and cash equivalents balance decreased from
US$5,554,000 as of Oct. 31, 2007, to US$2,117,000 as of July 31,
2008.  As of July 31, 2008, the company also had US$2,680,000 of
restricted cash, of which US$1,639,000 is set aside to cover
expert and other costs related to the SCO Litigation and
US$1,041,000 payable to Novell for royalties earned by Novell post
bankruptcy petition.

The company intend to use the cash as of July 31, 2008 to run
its UNIX business and pursue the SCO Litigation, and believe that
it has sufficient liquidity resources to fund its operations
through at least April 30, 2009.  However, as a result of both
the Court's Aug. 10, 2007, order and its entry into Chapter 11,
among other matters, there is substantial doubt about its ability
to continue as a going concern.

The company is operating pursuant to Chapter 11 of the Bankruptcy
Code and continuation of its business as a going concern is
contingent upon, among other things, its ability to (i) construct
and obtain confirmation of a plan of reorganization under the
Bankruptcy Code; (ii) reduce payroll and benefits costs and
liabilities under the bankruptcy process; (iii) achieve
profitability; (iv) achieve sufficient cash flows from operating
activities; and (v) obtain financing sources to meet its future
obligations.  These matters well as the aforementioned ruling in
favor of Novell create substantial doubt about its ability to
continue as a going concern.

The company's net cash used in operating activities during the
nine months ended July 31, 2008, was US$3,602,000 and was
attributable to a net loss of US$7,623,000, and a net decrease in
operating assets and liabilities of US$107,000, partially offset
by increase in liabilities subject to compromise of US$3,343,000
for Novell under the court order as full discussed in Recent
Developments and by non-cash items of US$785,000.

The company's net cash used in operating activities during the
nine months ended July 31, 2007, was US$690,000 and was
attributable to a net loss of US$4,565,000, partially offset by
a net increase in operating assets and liabilities of US$2,309,000
and non-cash items of US$1,566,000.

The company's investing activities have consisted of equipment
purchases and the purchase and sale of available-for-sale
marketable securities.  During the nine months ended July 31,
2008, cash provided by investing activities was US$104,000, which
was from distributions from our 30% ownership in a Chinese
company of US$114,000, partially offset by the purchases of
equipment of US$10,000.

During the nine months ended July 31, 2007, cash provided by
investing activities was US$2,168,000, which was a result of
proceeds from the sale of available-for-sale marketable
securities of US$2,249,000, offset by purchases of equipment of
US$81,000.

The company's financing activities provided US$22,000 of cash
during the nine months ended July 31, 2008, which were generated
from proceeds received from the sale of common stock through its
employee stock purchase plan.

The company's financing activities provided US$493,000 of cash
during the nine months ended July 31, 2007.  The sources of cash
were from the exercise of options to acquire common stock of
US$57,000 and proceeds of US$436,000 received from the sale of
common stock through its employee stock purchase plan.

The company's net accounts receivable balance decreased from
US$3,365,000 as of Oct. 31, 2007, to US$2,592,000 as of July 31,
2008, as a result of lower sales generated during the three months
ended July 31, 2008, as compared to the three months ended
Oct. 31, 2007.  The majority of its accounts receivable are
current and its allowance for doubtful accounts was US$124,000 as
of July 31, 2008, which represented approximately 5% of its gross
accounts receivable balance.  The company's write-offs of
uncollectible accounts during the three and nine months ended
July 31, 2008, and 2007 were not significant.

The company continues to pay for expert, consulting and other
expenses relating to the SCO Litigation.  These expenses have been
material in the past and even though we expect these expenses to
be lower for the year ending Oct. 31, 2008, as compared to the
year ended Oct. 31, 2007, the company expects to continue to be
material to its financial statements.

In addition, the company may pay one or more contingency fees
upon certain amounts the company or its stockholders may receive
as a result of a settlement, judgment, or a sale of the company.

As of July 31, 2008, the company did not have any long-term debt
obligations, purchase obligations or material capital lease
obligations.


The company stated that the restructuring imposed by the
Bankruptcy Court may also adversely affect its ability to raise
debt or equity capital.  Its delisting from NASDAQ will also
impair its ability to raise capital.

                       About The SCO Group

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq:SCOX)
fka Caldera International Inc. -- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.

The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.

The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337).  Paul Steven Singerman, Esq., and Arthur
Spector, Esq., at Berger Singerman P.A., represent the Debtors in
their restructuring efforts.  James O'Neill, Esq., and Laura Davis
Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, are the
Debtors' Delaware and conflicts counsels.  Epiq Bankruptcy
Solutions LLC, acts as the Debtors' claims and noticing agent.
The United States Trustee failed to form an Official Committee of
Unsecured Creditors in these cases due to insufficient response
from creditors.  The Debtors' schedules showed total assets of
US$9,549,519 and total liabilities of US$3,018,489.


* POLAND: Faces Financial Uncertainty Due to U.S. Shock Waves
-------------------------------------------------------------
The continuing tumult on the U.S. financial market has sent shock
waves around the world, including Poland, the Warsaw Business
Journal wrote on Sept. 23, 2008.  Stock prices on the Warsaw Stock
Exchange have plummeted.  Experts say that the Polish financial
system is relatively well-insulated against the faulty financial
instruments which have caused the global crisis, but in the short
run Poland can expect a bumpy ride.

Panic gripped the world financial markets as the U.S. economy took
a serious beating amid the simultaneous bankruptcy of Lehman
Brothers Holdings Inc. and near collapse of financial giant
Merrill Lynch and the American International Group, the Journal
observed.

The International Monetary Fund expects at least US$1 trillion in
global losses as a direct result of these and other events, such
as US government intervention in mortgage giants Fannie Mae and
Freddie Mac, the Journal relates.  In an interview with ABC's
George Stephanopoulos, former Federal Reserve Chairman Alan
Greenspan said this was "by far" the worst economic crisis he'd
seen and that more government bailouts were likely, the Journal
noted.

                      International Losses

Shock waves traveling from the American epicenter sent Asian and
European markets tumbling, the Journal related.

In Britain, the Journal said Lloyds TSB agreed to take over HBOS
for GBP12 billion, hopefully avoiding a repeat of February's
nationalization of Northern Rock.  Russia, for its part, announced
a plan to spend US$120 billion in state funds to rescue Russia's
financial system.  The move stood in sharp contrast to Prime
Minister Vladimir Putin's claims earlier this month that Russia
remained a "quiet harbor" for investors.

"I think you're seeing parts of that [1929 crash], you're seeing
parts of the 1970s, with rising commodity prices and inflationary
pressures that may lead to a global economic slowdown," the
Journal reported, citing Thomas Laursen, the World Bank's country
manager for Poland and the Baltic states.

                       Psychological Impact

Investors in Warsaw reacted much the same as their peers in other
countries, according to the Journal.  The WSE's overall WIG and
blue-chip WIG20 indices lost 3.62% and 3.81%, respectively, on
Tuesday, Sept. 23, 2008, alone, but ended the week just 1.9% and
0.9% down on the week after a rally.

Experts were cautious, however, in assessing the long-term impact
of these events on the Polish financial system, the Journal noted.
"I do think that the fundamental causes are behind us, but we may
not have seen the full repercussions," the Journal quoted Mr.
Laursen as saying.

Polish Deputy Minister of Finance Katarzyna Zajdel-Kurowska said
that the situation in the US market would not have a significant
impact on the domestic financial market, based on the report.  She
told the press that the fundamentals of the Polish economy were
very strong and the situation of domestic institutions stable.

The Journal wrote that stock market losses might be symptomatic of
the international crisis, but how the situation develops will
depend on measures taken by the financial regulators in their
attempts to stop a domino effect, said Roland Paszkiewicz, chief
analyst at brokerage CDM Pekao.

According to Michal Macierzynski, an analyst from Bankier.pl,
Poland is facing a long-term economic slowdown.  "The WIBOR
(Warsaw Interbank Offered Rate) has been on the rise," he said,
adding that Polish banks would tighten their lending rules.

According to Kristel Kivinurm-Priisalm, a managing partner and
fund manager at asset-management firm Avaron, the situation on the
WSE will be strongly affected by oil prices and the situation in
Georgia.

Mr. Macierzynski, according to the report, asserted that financial
institutions worldwide are scrambling to raise funds, and those
that do not succeed will go bankrupt.

But the Polish banking sector is not under siege, according to
Krzysztof Pietraszkiewicz, the president of the Polish Bank
Association (ZBP).  He assured that "They have not been investing
in very risky businesses."  He agreed that the Polish banking
system in Poland was relatively secure.  "Exports have a lower
share in our GDP," he added.

Despite the relatively insulated nature of the Polish market, the
global crisis will continue to have an indirect impact on the
Polish economy for some time, Mr. Pietraszkiewicz stressed, the
Journal reported.  Mr. Laursen concluded that there is a lot of
uncertainty."


===========
R U S S I A
===========


KLIN RAYON: Weak Liquidity Prompts S&P to Affirm B- Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B- 'long-term
issuer credit rating and 'ruBBB' Russia national scale rating on
Russian Klin Rayon and at the same time placed them on CreditWatch
with negative implications.  Klin is located in the Moscow Oblast
(BB/Watch Neg/--; Russia national scale ruAA/Watch Neg/--).

"The CreditWatch placement reflects potentially higher risks posed
by the rayon's weak liquidity in the currently fragile Russian
credit markets," said S&P's credit analyst Irina Pilman.

By year-end 2008, Klin's refinancing needs will account for RUR834
million (about US$33.4 million), which is approximately 24% of the
rayon's total expected revenues until the end of the year.  Free
cash flow -– currently only 4.2% of total revenues -- provides no
significant cushion.  The rayon plans to obtain bank loans to
repay its RUR300 million bond due Nov. 13, 2008, and two bank
loans due Dec. 25, 2008, totaling RUR264 million.  Because of
uncertainties in the Russian credit market, prospects for
obtaining this refinancing appear more uncertain that S&P
previously assumed.

"We will resolve the CreditWatch after we obtain more certainty on
the rayon's ability to receive the refinancing to meet debt
obligations fully and on time," said Ms. Pilman.

If the rayon receives the necessary refinancing, S&P will affirm
the rating and revise the outlook to stable.  However, if the
rayon is unable to obtain funding, S&P would likely lower the
ratings.

In either case, the ratings will continue to be constrained by the
rayon's dependence on decisions of the federal government and the
Moscow Oblast decisions.  These decisions result in high exposure
to short-term debt, low revenue and expenditures flexibility, and
volatile performance.


KRASNOGVARDEYSKIY CHEMICAL: Claims Filing Period Ends Nov. 11
-------------------------------------------------------------
Creditors of OJSC Krasnogvardeyskiy Chemical Forestry (TIN
6602000256) have until Nov. 11, 2008, to submit proofs of claims
to:

         A. Borovotchenko
         Insolvency Manager
         Post User Box 222
         620141 Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A60-50/08-S11.

The Court is located at:

         The Arbitration Court of Sverdlovskaya
         Prospect Lenina 34
         620075 Yekaterinburg
         Russia

The Debtor can be reached at:

         OJSC Tele-Kom-Stroy Spb
         Chimikov Str. 9
         Krasnogvardeyskiy
         Artemovskiy
         623770 Sverdlovskaya
         Russia


KRASNOUFIMSKIY RESEARCH: Creditors Must File Claims by Oct. 11
--------------------------------------------------------------
Creditors of LLC Krasnoufimskiy Research and Development Plant
have until Oct. 11, 2008, to submit proofs of claims to:

         Ye. Batuyeva
         Temporary Insolvency Manager
         Post User Box 321
         620014 Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
supervision procedure on the company. The case is docketed under
Case No. A60-17697/2008-S11.

The Court is located at:

         The Arbitration Court of Sverdlovskaya
         Prospect Lenina 34
         620075 Yekaterinburg
         Russia

The Debtor can be reached at:

         LLC Krasnoufimskiy Research and Development Plant
         Korolenko 5/3
         620027 Yekaterinburg
         Russia


MOSCOW OBLAST: S&P Places BB Issuer Credit Rating on Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services has placed on CreditWatch with
negative implications its 'BB' long-term issuer credit rating and
'ruAA' Russia national scale rating on Moscow Oblast.  At the same
time, S&P placed on CreditWatch negative all ratings on the
following related companies of the oblast: Moscow Regional
Investment Trust Co. (OJSC) (MRITC; B/--; ruA-), a financial
vehicle wholly owned by the Moscow Oblast; Mortgage Corporation of
Moscow Region (OJSC) (MCMR; B-/--; ruBBB), a developer and
mortgage company; and Mostransavto (CCC+; ruBB+), a transport
company 100% owned by the Moscow Oblast.

"The CreditWatch placements on MRITC, MCMR, and Mostransavto,
reflect the increased refinancing risks that these companies face
given their reliance on irregular transfers from the oblast budget
and short-term borrowing to refinance maturing debts," said S&P's
credit analyst Felix Ejgel.  "These risks are exacerbated by tight
liquidity in the Russian banking and capital markets as many
lenders scramble to preserve their own liquidity and market
sentiment becomes generally negative."

The CreditWatch placement on Moscow Oblast results from its need
to provide higher levels of funding, financed at higher interest
rates, to its related companies that are less able to borrow on
their own.

The oblast and its companies have high refinancing needs, with
debts maturing by the end of 2008 totaling about RUR50 billion.
This exceeds by 2x the cash reserves accumulated by the oblast and
the companies as of Sept. 19, 2008.

S&P expects the oblast to successfully refinance its RUR18 billion
loans taken from leading Russian state banks and due in October
and December 2008.

The oblast will likely use cash reserves and upcoming revenues to
mostly repay loans it guarantees totaling RUR20.9 billion,
including the put option on a bond issued by Moscow Oblast
Mortgage Agency, a financial vehicle wholly-owned by Moscow
Oblast.

S&P is uncertain, however, about how the oblast's related
companies plan to refinance the remaining RUR11 billion of
maturing debts that are not guaranteed by the oblast.  The
companies plan to roll over most of their maturing short-term
debts, but have no formal commitment from any bank at this stage.
Even if MRITC, MCMR, and Mostransavto manage this rollover, the
ratings may remain under pressure due to higher interest costs
incurred.

"We expect to resolve the CreditWatch on Moscow Oblast and related
companies MRITC, MCMR, and Mostransavto within the next 30-60
days, after we have gained more clarity about how the oblast's
companies plan to manage the refinancing of the massive debt
repayments due in December 2008, and when we have more visibility
on the willingness and capacity of Moscow Oblast to provide timely
support to its companies, if necessary," said Mr. Ejgel.


RENAISSANCE CAPITAL: Moody's Affirms E+ Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has placed the B1 long-term foreign
currency and local currency deposit ratings of Commercial Bank
"Renaissance Capital" LLC on review for possible downgrade.  The
review also applies to the bank's B1 long-term foreign currency
debt rating for senior obligations.  CBRC's E+ bank financial
strength rating (BFSR), with stable outlook, was affirmed.

The rating action follows Moody's decision to place the Ba3
ratings of Renaissance Capital Holding Limited , the largest
segment in the Renaissance group, on review for possible
downgrade.  This decision impacts CBRC because its current B1
long-term deposit ratings incorporate Moody's assessment of a
moderate probability of parental support from the Renaissance
group, resulting in a one-notch uplift for these ratings from
CBRC's B2 Baseline Credit Assessment.  The rating actions also
takes into account the increased uncertainty if the RCHL will have
the same desire to support the CBRC given the fact that 50% - 1
share in the company were sold to the third party.

In addition, Moody's notes that the bank has been growing very
rapidly outpacing the other large segments in the Renaissance
group, thus making it more difficult for the parent to provide
support.

Moody's previous rating action on CBRC was an upgrade of the long-
term deposit ratings to B1 in May 2007.

Based in (Moscow), CBRC is a member of Renaissance Capital
Consumer Finance Group, the consumer finance segment of the larger
Renaissance group, which also includes an investment banking
segment, asset management and merchant banking.  CBRC reported
total consolidated assets of US$2.5 million and total equity of
US$402 million under IFRS at end-H1 2008.


ROSNEFT OIL: Fined US$9 Million for Breach of Domestic Sales Law
----------------------------------------------------------------
The Irkutsk department of Russia's Federal Anti-monopoly Service
has fined Rosneft RUR229 million (US$9.1 million) for abuse on
wholesale gasoline market, Russian News & Information Agency (RIA)
Novosti wrote on Sept. 23 2008.

The anti-monopoly service said, "The violation was in the creation
by Rosneft of favorable oil product purchase conditions for its
subsidiaries and discriminatory conditions for buyers that are not
part of the company group," based on the report.

The company breached laws of domestic sales of oil products when
it supplied its subsidiary Irkutsknefteproduct under a long term
contract while other wholesale customers bid on a monthly basis,
RIA Novosti added.

                          About Rosneft

Headquartered in Moscow, Russia, OAO Rosneft Oil Co. --
http://www.rosneft.com/-- produces and markets petroleum
products.  The Company explores for, extracts, refines, and
markets oil and natural gas.  Rosneft produces oil in Western
Siberia, Sakhalin, the North Caucasus, and the Arctic regions of
Russia.

                          *     *     *

Rosneft Oil continues to carry a BB+ long-term corporate credit
rating from Standard & Poor's Ratings Services.  S&P said the
outlook is positive.


SHAMARSKIY INDUSTRIAL: Creditors Must File Claims by October 11
---------------------------------------------------------------
Creditors of CJSC Shamarskiy Industrial Forestry have until
Oct. 11, 2008, to submit proofs of claims to:

         V. Bobin
         Temporary Insolvency Manager
         Vikulova Str. 63/1-43
         620043 Yekaterinburg
         Russia

The Arbitration Court of Sverdlovskaya commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. A60-11242/2008-S11.

The Court is located at:

         The Arbitration Court of Sverdlovskaya
         Prospect Lenina 34
         620075 Yekaterinburg
         Russia

The Debtor can be reached at:

         CJSC Shamarskiy Industrial Forestry
         Oktyabrskaya Str. 2
         Shamary
         Shalinkiy
         623010 Sverdlovskaya
         Russia


STAL-M LLC: Creditors Must File Claims by October 11
----------------------------------------------------
Creditors of LLC Stal-M (TIN 7444043947) have until Oct. 11, 2008,
to submit proofs of claims to:

         A.Yeremin
         Temporary Insolvency Manager
         Prospect Mira 101V
         129085 Moscow
         Russia

The Arbitration Court of Chelyabinsk commenced bankruptcy
supervision procedure on the company.  The case is docketed under
Case No. 76-8956/2008-36-97.

The Court is located at:

         The Arbitration Court of Chelyabinsk
         Vorovskogo Str. 2
         454091 Chelyabinsk
         Russia

The Debtor can be reached at:

         LLC Stal-M
         Gertsena Str.6
         455001 Magnotogorsk
         Russia


TECHNO-MET CJSC: Creditors Must File Claims by October 11
---------------------------------------------------------
Creditors of CJSC Techno-Met have until Oct. 11, 2008, to submit
proofs of claims to:

         S. Sinitsyun
         Insolvency Manager
         Pobedy Str. 34/33
         620042 Yekaterinburg
         Russia

The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A76-9182/2008-48-130.

The Court is located at:

         The Arbitration Court of Chelyabinskaya
         Vorovskogo Str. 2
         454091 Chelyabinsk
         Russia

The Debtor can be reached at:

         CJSC Techno-Met
         Tatyanichevoy Str. 9A
         454080 Chelyabinsk
         Russia


TELE-KOM-STROY SPB: Creditors Must File Claims by October 11
------------------------------------------------------------
Creditors of OJSC Tele-Kom-Stroy Spb (TIN 7806053226) have until
Oct. 11, 2008, to submit proofs of claims to:

         B. Remnev
         Insolvency Manager
         Shpalernaya Str. 60
         191015 Saint-Petersburg
         Russia

The Arbitration Court of St. Petersburg commenced bankruptcy
proceedings against the company after finding it insolvent.  The
case is docketed under Case No. A56-19483/2008.

The Court is located at:

         The Arbitration Court of St. Petersburg
         Hall 113
         Suvorovskiy Pr. 50/52
         St. Petersburg
         Russia

The Debtor can be reached at:

         OJSC Tele-Kom-Stroy Spb
         Prospect Shaumyana 18
         195112 St. Petersburg
         Russia


URAL-PROM-TECHNOLOGY: Creditors Must File Claims by October 11
--------------------------------------------------------------
Creditors of LLC Ural-Prom-Technology (TIN 7448025917) have
until Oct. 11, 2008, to submit proofs of claims to:

         O. Artemov
         Insolvency Manager
         Post User Box 5
         620033 Yekaterinburg
         Russia

The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A76-9998/08-48-144.

The Court is located at:

         The Arbitration Court of Chelyabinskaya
         Vorovskogo Str. 2
         454091 Chelyabinsk
         Russia

The Debtor can be reached at:

         LLC Ural-Prom-Technology
         Office 103
         Prospect Pobedy 290
         Chelyabinsk
         Russia


YUZHNO-URALSKAYA FUEL: Creditors Must File Claims by October 11
---------------------------------------------------------------
Creditors of LLC Yuzhno-Uralskaya Fuel and Energy Company (TIN
7448028033) have until Oct. 11, 2008, to submit proofs of claims
to:

         O. Artemov
         Insolvency Manager
         Post User Box 5
         620033 Yekaterinburg
         Russia

The Arbitration Court of Chelyabinskaya commenced bankruptcy
proceedings against the company after finding it insolvent. The
case is docketed under Case No. A76-9635/08-55-118.

The Court is located at:

         The Arbitration Court of Chelyabinskaya
         Vorovskogo Str. 2
         454091 Chelyabinsk
         Russia

The Debtor can be reached at:

         LLC Yuzhno-Uralskaya Fuel and Energy Company
         Office 101
         Prospect Pobedy 290
         Chelyabinsk
         Russia


=============================
S L O V A K   R E P U B L I C
=============================


OTP BANKA: Moody's Affirms Bank Financial Strength Rating at D-
---------------------------------------------------------------
Moody's Investors Service downgraded the foreign and local
currency deposit ratings of OTP Banka Slovensko to Baa1/Prime-2
with stable outlook from A2/Prime-1.  This action concludes the
rating review initiated in July 2008 prompted by a public
statement by OBS's parent, Hungary's OTP Bank (rated Aa3/Prime-
1/C+), that it was considering selling some of its subsidiaries,
including possibly OBS, to finance its further expansion in
Eastern Europe and the Commonwealth of Independent States (CIS).
OBS's bank financial strength rating (BFSR) of D- was affirmed
with a stable outlook.

The downgrade of the deposit ratings has been triggered by Moody's
assessment that the probability of parental support for OBS from
OTP Bank -- which underpins these ratings -- has changed downwards
given the parent's intentions to sell the bank.  However, Moody's
assessment of parental support probability to OBS remains high,
compared to very high assigned previously.  Although Moody's would
still expect OTP Bank to support its Slovak subsidiary until the
potential sale is closed, the willingness to sell OBS suggests
that the latter's strategic importance for the OTP group is lower
than was previously the case.

The affirmation of OBS's BFSR at D- reflects Moody's view that the
bank's standalone financial strength is not affected by the plans
of its parent.  The D- rating reflects the bank's position as a
mid-sized player on the Slovak banking market and its relatively
weak profitability and efficiency.

Ratings downgraded:

  -- Long-term local and foreign currency deposits to
      Baa1 from A2

  -- Short-term local and foreign currency deposits to
      Prime-2 from Prime-1

Rating affirmed:

  -- Bank financial strength rating: D-

Headquartered in Bratislava, Slovakia, OBS reported consolidated
audited IFRS net income of SKK355.5 million (EUR10.58 million) in
2007 and total assets of SKK49.7 billion (EUR1.48 billion)

Headquartered in Budapest, Hungary, OTP Bank reported consolidated
audited IFRS net income of HUF208.5 billion (EUR828 million) and
total assets of HUF8,462 billion (EUR33.48 billion).


=========
S P A I N
=========


MADRID RMBS II: S&P Lowers Rating on Class D and E Notes to BB/B
----------------------------------------------------------------
Standard & Poor's Ratings Services has lowered and removed from
CreditWatch with negative implications its credit ratings on the
class D and E notes issued by MADRID RMBS II, Fondo de
Titulizacion de Activos and on the class C to E notes issued by
MADRID RMBS III, Fondo de Titulizacion de Activos.

At the same time, S&P placed on CreditWatch negative its credit
ratings on MADRID RMBS II's class B and C notes and MADRID RMBS
III's class B notes.   S&P also affirmed its ratings on the class
A notes (A1, A2, and A3) in both transactions.

The rating actions follow a full credit and cash flow analysis of
the most recent transaction information that S&P received.  The
results of S&P's analysis showed that the credit enhancement
available for MADRID RMBS II's class D and E notes and MADRID RMBS
III's class C to E notes was insufficient to maintain the current
ratings.

Defaults in these transactions, defined as arrears greater than
six months, are rising faster than S&P has historically seen for
the originator, Caja de Ahorros y Monte de Piedad de Madrid (Caja
Madrid).  This has resulted in an increase in the assessed
weighted-average foreclosure frequency for both transactions.
Arrears in MADRID RMBS II are driven by loans originated in 2005
with current loan-to-value ratios greater than 90%.  In MADRID
RMBS III, delinquencies were driven by loans originated in 2007
with loan-to-value ratios greater than 90%.

The class E notes' deferral of interest trigger for MADRID RMBS II
is 8% and 8.9% for MADRID RMBS III.  This means that when gross
cumulative defaults, defined as arrears greater than six months,
reach that level, the interest on this class will be paid after
amortization of the senior classes.  Currently, the cumulative
defaults as a percentage of the initial balance of the pool are
3.27% in MADRID RMBS II and 1.94% in MADRID RMBS III.

The ratings on class C to E notes issued by MADRID RMBS IV, Fondo
de Titulizacion de Activos were placed on CreditWatch negative on
Sept. 12, 2008 based on the deterioration in the collateral
performance.  This transaction did not form part of the current
analysis and the CreditWatch placement will be resolved in due
course.

The MADRID RMBS deals are Spanish residential mortgage-backed
securities (RMBS) transactions backed by pools of residential
mortgage-backed loans secured over residential properties in
Spain.  The originator and servicer, Caja Madrid, is the second-
largest savings bank and the fourth-largest financial entity in
Spain.

Ratings lowered and removed from CreditWatch Negative:

Class      Rating To       Rating From

MADRID RMBS II, Fondo de Titulizacion de Activos

  -- EUR1.8 Billion Residential Mortgage-Backed Floating-Rate
     Notes

D          BB                        BBB/Watch Neg
E          B                         BB/Watch Neg

MADRID RMBS III, Fondo de Titulizacion de Activos

  -- EUR3 Billion Residential Mortgage-Backed Floating-Rate Notes

C          A-                        A/Watch Neg
D          BB                        BBB/Watch Neg
E          B                         BB/Watch Neg

Ratings placred on CreditWatch Negative:

MADRID RMBS II, Fondo de Titulizacion de Activos

  -- EUR1.8 Billion Residential Mortgage-Backed Floating-Rate
     Notes

B          AA/Watch Neg              AA
C          A/Watch Neg               A

MADRID RMBS III, Fondo de Titulizacion de Activos

  -- EUR3 Billion Residential Mortgage-Backed Floating-Rate Notes

B          AA/Watch Neg              AA

Ratings affirmed:

MADRID RMBS II, Fondo de Titulizacion de Activos

  -- EUR1.8 Billion Residential Mortgage-Backed Floating-Rate
     Notes

A1         AAA
A2         AAA
A3         AAA

MADRID RMBS III, Fondo de Titulizacion de Activos

  -- EUR3 Billion Residential Mortgage-Backed Floating-Rate Notes

A1         AAA
A2         AAA
A3         AAA


=====================
S W I T Z E R L A N D
=====================


AAS ENGINEERING: Creditors Have Until Oct. 11 to File Claims
------------------------------------------------------------
Creditors owed money by JSC AAS Engineering are requested to file
their proofs of claim by Oct. 11, 2008, to:

         JSC PKF Consulting
         Lavaterstrasse 40
         8002 Zurich
         Switzerland

The company is currently undergoing liquidation in Stansstad NW.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 12, 2008.


BLEXTRA IMMOBILIEN: Oct. 11 Set as Deadline to File Claims
----------------------------------------------------------
Creditors owed money by JSC BLEXTRA IMMOBILIEN are requested to
file their proofs of claim by Oct. 11, 2008, to:

         Wolfgang Zollig
         Wilenstrasse 177
         8832 Wilen
         Switzerland

The company is currently undergoing liquidation in Uznach.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 21, 2008.


BRODER-GETRANKE JSC: Creditors Must File Claims by Oct. 12
----------------------------------------------------------
Creditors owed money by JSC Broder-Getranke are requested to file
their proofs of claim by Oct. 12, 2008, to:

         Hans Brode
         Elestastrasse 17
         7310 Bad Ragaz
         Switzerland

The company is currently undergoing liquidation in Bad Ragaz.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 14, 200.


CHATEAU REVA: Deadline to File Proofs of Claim Set Oct. 11
----------------------------------------------------------
Creditors owed money by LLC Chateau Reva are requested to file
their proofs of claim by Oct. 11, 2008, to:

         Baarermatte
         6340 Baar
         Switzerland

The company is currently undergoing liquidation in Baar.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 25, 2008.


HDIC LLC: Proofs of Claim Filing Deadline is Oct. 11
----------------------------------------------------
Creditors owed money by LLC HDIC are requested to file their
proofs of claim by Oct. 11, 2008, to:

         Dr. Walter Schmidt
         Gentenwisstrasse 15
         8332 Russikon
         Switzerland

The company is currently undergoing liquidation in Russikon.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on March 27, 2007.


ILGENHOF JSC: Creditors' Proofs of Claim Due by Oct. 12
-------------------------------------------------------
Creditors owed money by JSC Ilgenhof are requested to file their
proofs of claim by Oct. 12, 2008, to:

         Trust Company JSC ORTAG
         Birmensdorferstrasse 125
         Mail Box: 8722
         8036 Zurich
         Switzerland

The company is currently undergoing liquidation in St. Gallen.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 20, 2008.


URECH LYSS: Oct. 10 Set as Deadline to File Proofs of Claim
-----------------------------------------------------------
Creditors owed money by JSC Urech Lyss 1A Schuhversand are
requested to file their proofs of claim by Oct. 10, 2008, to:

         Thomas Urech
         Werkstrasse 39
         3250 Lyss
         Switzerland

The company is currently undergoing liquidation in Lyss.  The
decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Jan. 10, 2007.


ZEMAGEM LLC: Creditors Must File Proofs of Claim by Oct. 11
-----------------------------------------------------------
Creditors owed money by LLC ZEMAGEM are requested to file their
proofs of claim by Oct. 11, 2008, to:

         Christian Riner
         Seeackerweg 7
         8264 Eschenz
         Switzerland

The company is currently undergoing liquidation in Eschenz TG.
The decision about liquidation was accepted at an extraordinary
shareholders' meeting held on Aug. 14, 2008.


=============
U K R A I N E
=============


APEKS LLC: Creditors Must File Claims by October 11
---------------------------------------------------
Creditors of LLC Building-Investment Company Apeks (code EDRPOU
34294760) have until Oct. 11, 2008, to submit proofs of claim to:

         The Economic Court of Kiev
         B. Hmelnitskij Boulevard 44-B
         01030 Kiev
         Ukraine

The Economic Court of Kiev commenced the bankruptcy supervision
procedure the company.  The case is docketed as 43/423.

The Debtor can be reached at:

         LLC Building-Investment Company Apeks
         Ap. 15
         Konstantinovskaya Str. 54
         04071 Kiev
         Ukraine


DIBROVA OJSC: Creditors Must File Claims by October 11
------------------------------------------------------
Creditors of OJSC Zhashkov Repair Station Subsidiary Company
Dibrova (code EDRPOU 05453634) have until Oct. 11, 2008, to submit
proofs of claim to:

         The Economic Court of Cherkassy
         Shevchenko Avenue 307
         18005 Cherkassy
         Ukraine

The Economic Court of Cherkassy commenced bankruptcy proceedings
against the company after finding it insolvent on Dec. 6, 2007.
The case is docketed as 14/5404.

The Debtor can be reached at:

         OJSC Zhashkov Repair Station Subsidiary Company Dibrova
         Kuybishev Str. 10
         Zhashkov
         Cherkassy
         Ukraine


DIV LLC: Creditors Must File Claims by October 11
-------------------------------------------------
Creditors of LLC DIV (code EDRPOU 32958372) have until Oct. 11,
2008, to submit proofs of claim to:

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 1, 2008.
The case is docketed as 42/95B.

The Debtor can be reached at:

         LLC DIV
         Kuybishev Str. 58
         Donetsk
         Ukraine


KZ HOLDING: Creditors Must File Claims by October 11
----------------------------------------------------
Creditors of LLC Trading-Production Company IKZ Holding (code
EDRPOU 31274558) have until Oct. 11, 2008, to submit proofs of
claim to:

         The Economic Court of Lvov
         Lichakivska Str. 81
         79010 Lvov
         Ukraine

The Economic Court of Lvov commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 26, 2008.
The case is docketed as 8/102.

The Debtor can be reached at:

         LLC Trading-Production Company IKZ Holding
         Ofc. 407
         Chernovol Avenue 63
         79058 Lvov
         Ukraine


PENTKOM LLC: Creditors Must File Claims by October 11
------------------------------------------------------
Creditors of LLC Pentkom (code EDRPOU 21784247) have until
Oct. 11, 2008, to submit proofs of claim to:

         The Economic Court of Lugansk
         Geroiv VVV Square 3a
         91000 Lugansk
         Ukraine

The Economic Court of Lugansk commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 28, 2008.
The case is docketed as 12/74b.

The Debtor can be reached at:

         LLC Pentkom
         Zavodskaya Str. 38
         Severodonetsk
         93400 Lugansk
         Ukraine


POLTAVA-DILO LTD: Creditors Must File Claims by October 11
----------------------------------------------------------
Creditors of LLC Firm Poltava-Dilo Ltd (code EDRPOU 21072305) have
until Oct. 11, 2008, to submit proofs of claim to:

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy proceedings
against the company after finding it insolvent on Sept. 1, 2008.
The case is docketed as 42/96B.

The Debtor can be reached at:

         LLC Firm Poltava-Dilo Ltd
         83055 Donetsk
         Gurov Avenue 11
         Ukraine


SANATORIUM-PREVENTORIUM YUBILEYNY: Claims Filing Ends October 11
----------------------------------------------------------------
Creditors of OJSC Osnastka Subsidiary Company Sanatorium-
Preventorium Yubileyny (code EDRPOU 25087367) have until Oct. 11,
2008, to submit proofs of claim to:

         The Economic Court of Volin
         Volia Avenue 54-a
         43010 Lutsk
         Volin
         Ukraine

The Economic Court of Volin commenced bankruptcy proceedings
against the company after finding it insolvent on Aug. 28, 2008.
The case is docketed as 7/137-B.

The Debtor can be reached at:

         OJSC Osnastka Subsidiary Company Sanatorium-
         Preventorium Yubileyny
         Lutsk Str. 25
         Novovolinsk
         45403 Volin
         Ukraine


SPECIAL ELIT ASSEMBLY: Creditors Must File Claims by October 11
---------------------------------------------------------------
Creditors of LLC Special Elit Assembly (code EDRPOU 31522898) have
until Oct. 11, 2008, to submit proofs of claim to:

         The Economic Court of Zaporozhje
         Shaumiana Str. 4
         69001 Zaporozhje
         Ukraine

The Economic Court of Zaporozhje commenced bankruptcy proceedings
against the company after finding it insolvent on  July 25, 2008.
The case is docketed as 16/284/07.

The Debtor can be reached at:

         LLC Special Elit Assembly
         Troleybusnaya Str. 34
         Zaporozhje
         Ukraine


TRANSMACHINE OJSC: Creditors Must File Claims by October 11
-----------------------------------------------------------
Creditors of OJSC Transmachine (code EDRPOU 31399438) have until
Oct. 11, 2008, to submit proofs of claim to:

         The Economic Court of Donetsk
         Artema Str. 157
         83048 Donetsk
         Ukraine

The Economic Court of Donetsk commenced bankruptcy supervision
procedure on the company on July 25, 2008.  The case is docketed
as 5/107B.

The Debtor can be reached at:

         OJSC Transmachine
         Gurov Avenue 2
         83055 Donetsk
         Ukraine


UKRAINE AUTO: Fitch Changes Outlook on Class B Notes to Stable
--------------------------------------------------------------
Fitch revised the Outlook on the Ukraine Auto Loan Finance No. 1
Plc's senior Class notes to Negative from Stable.  At the same
time, the ratings of all classes are affirmed.  This is a
securitization of auto loans originated within Ukraine by CJSC
Privatbank (rated 'B'/Outlook Stable), the largest privately owned
bank within the country.

  -- Class A (ISIN XS0364719640) affirmed at 'BBB-'; Outlook
     revised to Negative from Stable

  -- Class B (ISIN XS0364720143) affirmed at 'B'; Outlook Stable

The revision of Outlook follows the change in the Outlook on
Ukraine (rated 'BB-') on Sept. 25, 2008.

Fitch's emerging market structured finance criteria use the
sovereign's rating and its Country Ceiling - which measures
country risks - as reference points.  As such, a downward revision
of both measures impacts the rating on the notes issued via a
securitization.

First, the Country Ceiling expresses the likelihood of transfer
and convertibility restrictions imposed on foreign currency cash
flows by local authorities.  Such a measure would impact the cash
flow from assets as the securitized loans within Ukraine Mortgage
Loan Finance No. 1 Plc are disbursed and repayable in USD.

However, based on past sovereign crises, Fitch is of the view that
such measures are temporary.  The rating on the senior notes is
notched three levels above the Country Ceiling, reflecting
coverage for 18 months of interest due on the notes - provided by
a cash reserve and an insurance policy for Expropriation and
Currency Inconvertibility (issued by Steadfast Insurance Company).

Fitch uses sovereign ratings as a basis for determining loss rates
for each rating level and assumes wider losses with each further
notching above the sovereign's rating.  As such, if the sovereign
rating is downgraded, the loss rate to withstand at the current
rating will be higher compared to that on the notes' issue date.
However, as the transaction is still in its revolving period, the
available credit enhancement has remained at the same level at
closing and will not be sufficient to withstand the higher loss
assumption.


UKRAINE MORTGAGE: Fitch Changes Outlook on Class B Notes to Stable
------------------------------------------------------------------
Fitch Ratings has revised the Outlook on Ukraine Mortgage Loan
Finance No. 1 Plc's senior Class notes to Negative from Positive.
At the same time, the ratings of the notes are affirmed. It is a
securitization of mortgage loans originated by CJSC Privatbank
(rated 'B'/Outlook Stable), the largest privately owned bank
within the country.

  -- Class A (ISIN XS0285818075) affirmed at 'BBB-'; Outlook
     revised to Negative from Positive

  -- Class B (ISIN XS0285819123) affirmed at 'B+'; Outlook Stable

The revision of Outlook follows the change in the Outlook on
Ukraine (rated 'BB-') on Sept. 25, 2008.

Fitch's emerging market structured finance criteria use the
sovereign's rating and its Country Ceiling - which measures
country risks - as reference points.  As such, a downward revision
of both measures impacts the rating on the notes issued via a
securitization.

First, the Country Ceiling expresses the likelihood of transfer
and convertibility restrictions imposed on foreign currency cash
flows by local authorities.  Such a measure would impact the cash
flow from assets as the securitized loans within Ukraine Mortgage
Loan Finance No. 1 Plc are disbursed and repayable in USD.

However, based on past sovereign crises, Fitch is of the view that
such measures are temporary.  The rating on the senior notes is
notched three levels above the Country Ceiling, reflecting
coverage for 18 months of interest due on the notes - provided by
a cash reserve and an insurance policy for Expropriation and
Currency Inconvertibility (issued by Steadfast Insurance Company).

Second, Fitch uses sovereign ratings as a basis for determining
loss rates for each rating level and assumes wider losses with
each further notching above the sovereign's rating.  As such, if
the sovereign rating is downgraded, the loss rate to withstand at
the current rating will be higher compared to that on the notes'
issue date.

The transaction has been amortizing sequentially since closing in
January 2007.  Consequently, the available credit enhancement for
the transaction has increased to reach 50.5% for the Class A notes
and 16.2% for the Class B notes as of August 2008.  The initial
credit enhancement stood at 30.2% and 9.7% respectively.
According to the latest investor reports, loss rates are low (at
0.15%) and no triggers have been breached.


VTB JSC: Fitch Retains 'D/E' Individual Rating
----------------------------------------------
Fitch Ratings has assigned JSC VTB Bank (Ukraine)'s upcoming two
series (A and B) of hryvna-denominated senior unsecured bonds
expected National Long-term ratings of 'AAA'(ukr)'  The final
ratings of the bonds are contingent on the receipt of final
documents materially conforming to information already received.

The expected terms of the issues are:

Series A:
Size UAH250 million
Maturity in one year
Put option: after six months

Series B:
Size UAH250 million
Maturity in two years
Put option: after one year

The bank's obligations under the issues will rank at least equally
with the claims of other senior unsecured creditors of VTBU,
except those preferred by relevant legislation.  Under Ukrainian
law, the claims of retail depositors rank above those of other
senior unsecured creditors.  At end-H108, retail deposits
accounted for 9% of VTBU's total liabilities, according to the
bank's International Financial Reporting Standards preliminary
draft accounts.

VTBU's ratings are Long-term foreign currency Issuer Default
'BB-', Long-term local currency IDR 'BB', Short-term foreign
currency IDR 'B', Individual 'D/E', Support '3' and National
'AAA'(ukr)'.  Both Long-term IDRs have Negative Outlooks.  The
National Rating has a Stable Outlook.

VTBU is a medium-sized Ukrainian bank, ranked 12th by assets in
the country at end-H108 according to National Bank of Ukraine.
More than 99.8% of VTBU is currently owned by JSC Bank VTB
('BBB+'/Stable).


* CITY OF KYIV: Fitch Revises Outlook to Negative from Stable
-------------------------------------------------------------
Fitch Ratings has revised Ukraine's City of Kyiv Outlook to
Negative from Stable for its Long-term Foreign and Local currency
ratings and National Long-term rating.  Kyiv's ratings are
affirmed at Long-term foreign and local currency ratings of 'BB-'
and a Short-term foreign currency rating of 'B'.  Fitch also
affirmed Kyiv's National Long-term rating of 'AA+(ukr)'.

This rating action follows the revision of Ukraine's Outlook from
Stable to Negative due to a growing risk of a currency crisis and
deteriorating financial fundamentals.

The City of Kyiv is the capital of Ukraine.  It has a population
of around 2.7 million inhabitants, which makes up about 5.6% of
Ukraine's total population.


===========================
U N I T E D   K I N G D O M
===========================


A BURRELL: Brings in Liquidators from Baker Tilly
-------------------------------------------------
Trevor Smith and Nigel Millar of Baker Tilly Restructuring &
Recovery LLP were appointed joint liquidators of A Burrell and Son
(Peter Taylor) Ltd. on Sept. 10, 2008, for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         A Burrell and Son (Peter Taylor) Ltd.
         c/o Smithaston
         The Royal
         25 Bank Plain
         Norwich
         NR2 4SF
         England


DEAN SMITH: Calls in Joint Administrators from Baker Tilly
----------------------------------------------------------
Mark Ranson and Adrian Allen of Baker Tilly Restructuring and
Recovery LLP were appointed joint administrators of Dean Smith and
Grace Ltd. (Company Number 03303606) on Sept. 11, 2008.

The company can be reached at:

         Dean Smith and Grace Ltd.
         PO Box 15
         Pitt Street
         Keighley
         West Yorkshire
         BD21 4PG
         England


FORDINGTON BUILDERS: Appoints Liquidators from Mazars
-----------------------------------------------------
Timothy Colin Hamilton Ball and Alistair Steven Wood of Mazars LLP
were appointed joint administrators of Fordington Builders Ltd.
(Company Number 04123682) on Sept. 4, 2008.

The company can be reached at:

         Fordington Builders Ltd.
         c/o Mazars LLP
         8 New Fields
         2 Stinsford Road
         Nuffield
         Poole
         BH17 0NF
         England


FORDINGTON WINDOWS: Taps Liquidators from Mazars
------------------------------------------------
Timothy Colin Hamilton Ball and Alistair Steven Wood of Mazars LLP
were appointed joint administrators of Fordington Windows &
Conservatories Ltd. (Company Number 05159665) on Sept. 4, 2008.

The company can be reached at:

         Fordington Windows & Conservatories Ltd.
         c/o Mazars LLP
         8 New Fields
         2 Stinsford Road
         Nuffield
         Poole
         BH17 0NF
         England


HARDY AMIES: Halts AIM Trading Due to Funding Problems
------------------------------------------------------
Hardy Amies plc has requested that trading in its shares on AIM be
suspended with immediate effect pending clarification of the
Company's financial position.

The Company has been provided with significant financial support
to date in the form of substantial loans from its major
shareholder, Arev Brands Limited.  The Company recently requested
further financial support from ABL to fund ongoing working capital
requirements.

The Directors of Hardy Amies were confident that the necessary
funds would be forthcoming until late afternoon on Sept. 28, 2008,
when its major shareholder informed the Company that it was unable
to provide the requisite finance.

The Directors are considering the options for the Company in the
light of this news, which may involve placing Hardy Amies into
administration.

Hardy Amies plc -- http://www.hardyamies.com/-- engages in the
design and sale of haute couture garments.

Hardy Amies Plc has posted a loss of GBP1.7 million for the year
ended Dec. 31, 2007.


INGRAM CARE: Positive Life Buys Firm Out of Administration
----------------------------------------------------------
A Gateshead-based provider of carers and in-home care services to
residents of Newcastle upon Tyne and Gateshead has been acquired
out of administration, safeguarding the jobs of 15 staff and
ensuring continuity of care for local service users.

GBP250,000 turnover, Ingram Care Services Ltd went into
administration on Aug. 29, 2008.  The company provided care
services to Newcastle and Gateshead councils.

Joint administrators Simon Lundy and Andrew Haslam, of business
rescue, recovery and restructuring specialist Begbies Traynor in
Newcastle, were able to negotiate a deal to sell the assets and
business to South Shields-based Positive Life Choices for an
undisclosed sum.

The administrators reported that on Sept. 18, 2008 they concluded
a sale of the assets and business of Ingram Care Services Ltd to
Positive Life Choices Ltd which is run by Amanda and Ian
Dickinson.

Ingram Care Services had been the subject of a winding up petition
issued by HM Revenue & Customs who were owed unpaid VAT and PAYE.

On the advice of Begbies Traynor, the directors made an
application to the Newcastle upon Tyne District Registry of the
High Court seeking an administration order.

In the interim period Ingram Care Services had, with the
assistance and guidance of Begbies Traynor and Watson Burton,
Solicitors, of Newcastle upon Tyne, entered into a sub contract
agreement with Positive Life Choices.

Positive Life Choices undertook to provide the ongoing care
services to the two local Councils pending the outcome of the
application for an administration order and completion of the sale
of the assets and business to Positive Life Choices.

"When we were approached by the directors the company was already
subject to a winding up petition by HM Customs and Revenue that
severely restricted its ability to provide continued care services
to the residents of Gateshead and Newcastle upon Tyne," Simon
Lundy, director in the Newcastle office of Begbies Traynor, said.

"Positive Life Choices Limited were already interested in
acquiring the assets and business but the winding up petition
prevented any such acquisition.  We advised the directors that the
company should seek an administration order and in the meantime
Ingram Care Services entered into negotiations with Positive Life
Choices for the sale of Ingram's assets and business once the
company was in administration."

Both Positive Life Choices and Ingram Care Services were required
to provide Gateshead Council and the City of Newcastle upon Tyne
Council with certain assurances before agreeing to allow Positive
Life Choices to provide the care services under a sub-contract
arrangement pending the outcome of the application.

Positive Life Choices was founded in 2007 by director Amanda
Dickinson, and specializes in providing care services to North
East residents on behalf of local councils.

"The deal makes perfect sense for all parties, as its business is
a very good fit for our organization and allows us to continue to
grow by gaining very good specialist care and administration
staff.  It's the end of an uncertain period for those employees
and the local residents who rely on them to ensure quality of
life." Amanda Dickinson said.

Based in Gateshead, United Kingdom, Ingram Care Services Limited
-- http://www.ingram-care.co.uk/-- was formed in 2003 to provide
a service of personal care and associated domestic services to
meet the needs of dependent clients in their own home twenty four
hours a day seven days a week, including the provision of
emergency cover and care at short notice.


LEHMAN BROTHERS: Euroclear Addresses Concerns Over Bank's Fallout
-----------------------------------------------------------------
Euroclear, Europe's largest settlement depository, has reassured
the market that it will cope with the fallout of the collapse of
Lehman Brothers Holdings Inc., Luke Jeffs at the Financial News
Online reports.  The news comes less than 24 hours after Europe's
largest clearing house, LCH.Clearnet, declared it was successfully
managing Lehman Brother's default.

Meanwhile, Tony Lomas at PricewaterhouseCoopers LLP in London, the
appointed administrator of Lehman Brothers, said that in mid-
September, counterparties and clearing houses were left hanging on
how to assess the risks they faced relating to Lehman Brothers'
meltdown, the Financial News related.

Mr. Lomas said that there is unprecedented uncertainty and
complexity in the market and problems in the derivatives market
affected the cash market, the Financial News reported.  Concerns
centered on Euroclear which has been working with its sellside
customers to calculate their exposure to Lehman Brothers.
Euroclear, according to the report, has been working with PwC to
address the concerns.

                      About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LEHMAN: Considers Structures for Client Assets Distribution
-----------------------------------------------------------
Following on from the statement issued on Sept. 21, 2008, the
joint administrators of Lehman Brothers International (Europe)
wish to inform clients of LBIE that they are considering, in
consultation with their legal advisors and the FSA, structures
which may enable them to offer counterparties a partial
distribution of monies and assets designated as Client Assets.

The Administrators hope to be in a position to provide further
updates on these proposals in due course.  Counterparties should
understand that it is likely to take some weeks for these
structures to be fully developed.

The Administrators appreciate and acknowledge the significant
difficulties that are being faced by counterparties and can
confirm that the identification and return of Client Assets
remains a major priority.

                  About PricewaterhouseCoopers

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders. More than 146,000 people in 150 countries across
our network share their thinking, experience and solutions to
develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to PricewaterhouseCoopers LLP (a
limited liability partnership in the United Kingdom) or, as the
context requires, the PricewaterhouseCoopers global network or
other member firms in the network, each of which is a separate
and independent legal entity.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. --http://www.lehman.com-- is the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.  Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity.  Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region.  The firm, through predecessor
entities, was founded in 1850.

Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition listed
US$639 billion in assets and US$613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.

Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Barclays Bank Plc has agreed, subject to U.S. Court and relevant
regulatory approvals, to acquire Lehman Brothers' North American
investment banking and capital markets operations and supporting
infrastructure for US$1.75 billion.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  These are currently the only UK incorporated
companies in administration.  Tony Lomas, Steven Pearson, Dan
Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers
LLP, have been appointed as joint administrators to Lehman
Brothers International (Europe) on September 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
The two units of Lehman Brothers Holdings, Inc., which has filed
for bankruptcy protection in the U.S. Bankruptcy Court for the
Southern District of New York, have combined liabilities of JPY4
trillion -- US$38 billion).  Lehman Brothers Japan Inc. reported
about JPY3.4 trillion (US$33 billion) in liabilities in its
petition.  Akio Katsuragi, a former Morgan Stanley executive, runs
Lehman's Japan units.

Lehman Brothers Asia Limited, Lehman Brothers Securities Asia
Limited and Lehman Brothers Futures Asia Limited have suspended
its operations with immediate effect, including ceasing to trade
on the Hong Kong Securities Exchange and Hong Kong Futures
Exchange, until further notice.  The Asian units' asset management
company, Lehman Brothers Asset Management Limited, will continue
to operate on a business as usual basis.  A further notice
concerning the retail structured products issued by or arranged by
any Lehman Brothers group company will be issued as soon as
possible, a press statement said.


LIMOUSIN FOOD: Appoints Liquidators from PwC
--------------------------------------------
Mark David Arthur Loftus and Edward Klempka of
PricewaterhouseCoopers LLP were appointed joint liquidators of
Limousin Food Services Ltd. on Sept. 15, 2008, for the creditors'
voluntary winding-up proceeding.

The company can be reached at:

         Limousin Food Services Ltd.
         c/o PricewaterhouseCoopers LLP
         Benson House
         33 Wellington Street
         Leeds
         West Yorkshire
         LS1 4JP
         England


LOIRE VALLEY: Brings in Joint Administrators from Tenon Recovery
----------------------------------------------------------------
S. J. Parker and T. J. Binyon of Tenon Recovery were appointed
joint administrators of Loire Valley Imports Ltd. (Company Number
3985363) on Sept. 18, 2008.

The company can be reached at:

         Loire Valley Imports Ltd.
         Sherlock House
         73 Baker Street
         London
         W1U 6RD
         England


MACKINNON LYNCH: Taps Joint Administrators from PwC
---------------------------------------------------
Karen L. Dukes and Ian D. Green of PricewaterhouseCoopers LLP were
appointed joint administrators of Mackinnon Lynch Ltd. (Company
Number 05513675) on Sept. 11, 2008.

The company can be reached at:

         Mackinnon Lynch Ltd.
         41-43 William Street
         Herne Bay
         Kent
         CT6 5NT
         England


MINMAR LTD: Calls in Joint Administrators from Grant Thornton
-------------------------------------------------------------
Daniel Robert Whiteley Smith and Martin Gilbert Ellis of Grant
Thornton U.K. LLP were appointed joint administrators of Minmar
(762) Ltd. (Company Number 05771215) on Sept. 12, 2008.

The company can be reached at:

         Minmar (762) Ltd.
         51 Queen Anne Street
         London
         W1G 9HS
         England


NORTHERN AFFORDABLE: Taps Tenon Recovery as Administrators
----------------------------------------------------------
Matthew Colin Bowker and Christopher Ratten of Tenon Recovery were
appointed joint administrators of Northern Affordable Homes Ltd.
(Company Number 04427629) on Sept. 17, 2008.

The company can be reached at:

         Northern Affordable Homes Ltd.
         c/o Tenon Recovery
         Clive House
         Clive Street
         Bolton
         Lancashire
         BL1 1ET
         England


PRO-PARTS LTD: Colin Prescott Leads Liquidation Procedure
---------------------------------------------------------
Colin Prescott of Moore Stephens LLP was appointed liquidator of
Pro-Parts (Motor Spares) Ltd. on Sept. 4, 2008, for the creditors'
voluntary winding-up procedure.

The company can be reached at:

         Pro-Parts (Motor Spares) Ltd.
         c/o Moore Stephens LLP
         1-2 Little King Street
         Bristol
         BS1 4HW
         England


RETAIL PRO: John C. Redding Quits as Secretary and General Counsel
------------------------------------------------------------------
Retail Pro, Inc. disclosed in a Securities and Exchange Commission
filing that effective Sept. 12, 2008, John C. Redding resigned as
the company's Secretary and General Counsel.

Headquartered in La Jolla, California, Retail Pro, Inc. (OTC:
IPIN.PK) -- http://www.retailpro.com/-- provides Point of Sale,
Store Operations, Merchandising, Planning, Business Intelligence,
and Payment Processing software applications for the specialty
retail industry.

Retail Pro(R) is delivered through a world-wide network of channel
partners.  The company maintains offices in the United States,
United Kingdom, Australia, Mexico, Italy, Poland and China.

                      Going Concern Doubt

Goldman & Parks LLP, in Encino, California, expressed substantial
doubt about Island Pacific Inc. nka. Retail Pro Inc.'s ability to
continue as a going concern after auditing the company's
consolidated financial statements for the years ended March 31,
2007, and 2006.  The auditing firm reported that the company has
suffered recurring losses from operations and has an accumulated
deficit of US$81,979,000 as of March 31, 2007.


SOVEREIGN OILFIELD: Can't Publish 2008 Report; Suspends Trading
---------------------------------------------------------------
The Board of Sovereign Oilfield Plc has announced that trading in
its AIM securities has been suspended as the Group will be unable
to publish its Annual Report and Accounts for the year ended March
31, 2008 by Sept. 30, 2008.

The Group is in advanced negotiations with a number of lenders,
including its existing lenders, regarding a re-structuring of the
Group's debt facilities.  As part of these discussions the Group
is also seeking to secure additional working capital to support
the continued growth of the Fabrication division.

While the Board believes that this process will conclude
successfully, the directors recognize, given the state of the
banking sector, that there is uncertainty as to the time it will
take to conclude such negotiations.

The trading performance of the Fabrication division in the year
ended March 31, 2008, was broadly in line with the director's
expectations and the division continues to perform strongly in the
current year with a number of new contract wins including in the
Middle East.  The trading performance of the Drilling Division has
been disappointing and in particular Diamant Drilling Services SA
and Maxwell Downhole Technology Limited.

The Board anticipates that the report and accounts for Sovereign
for the year ended March 31, 2008, will be released following
completion of the re-negotiation of its banking arrangements.

Sovereign Oilfield plc -- http://www.sovereign-oil.eu-- is an
oilfield service company focused on providing an integrated
fabrication service and integrated drilling and engineering
services to oil and gas companies.


TITAN EUROPE 2006-5: S&P Puts B-Rated Class F Notes on Watch Neg.
-----------------------------------------------------------------
Standard & Poor's Rating Services has placed on CreditWatch with
negative implications its ratings on the class E and F notes
issued by Titan Europe 2006-5 PLC.  The ratings on the other
classes in the transaction remain unaffected.

Titan Europe 2006-5 is backed by seven loans, all of which are
secured by properties in Germany.

S&P previously lowered its 'BB' rating on the class F notes to 'B'
due to its increased concerns regarding the credit quality of the
Hilite loan.

The largest loan in the pool (DIVA) is secured by multifamily
housing properties, predominantly situated in Berlin.

On Sept. 17, 2008,  S&P was informed that Level One Holdings --
the entity that owns the DIVA borrowers—has filed for insolvency,
and that subsequently some of the DIVA borrowers have become
subject to insolvency proceedings as well.  This loan has been
transferred into special servicing.

The rating actions follow S&P's further review of the DIVA loan
and the underlying collateral in light of these developments.

The reported cash flow from the properties has in fact improved by
about 5% since the closing date, and interest coverage currently
stands at 1.47x for the securitized portion of the loan.

S&P is aware, however, that there are a number of possible workout
scenarios, and the CreditWatch negative placements reflect the
current uncertainty surrounding this.  This is particularly
relevant, given prevailing market conditions regarding both
funding and real estate capital values.  Once S&P has a clearer
understanding of the workout strategy, it would expect to be able
to resolve the placement.

S&P also previously highlighted that not all associated costs may
be drawable under the liquidity facility—for instance, special
servicing fees.  This could affect the most junior class of notes
and if it did occur, the rating on the class F notes could be
lowered to 'D'.

Titan Europe 2006-5 PLC

  -- EUR660.969 Million Commercial Mortgage-Backed Floating-Rate
     Notes

Ratings Placed On CreditWatch Negative:

Class              To            From
-----              --            ----
   E          BBB-/Watch Neg      BBB-
   F           B/Watch Neg         B


WINDERMERE XII: Fitch Cuts EUR59MM Class D Notes Rating to 'BB-'
----------------------------------------------------------------
Fitch Ratings has downgraded the notes B, C, D, E, F G and H from
Windermere XII FCC and also placed them on Rating Watch Negative
as:

  -- EUR776.0 million Class A due July 2017:
     affirmed at 'AAA'; Outlook Stable

  -- EUR0.003 million Class X due July 2017:
     affirmed at 'AAA'; Outlook Stable

  -- EUR317.4 million Class B due July 2017:
     downgraded to 'AA' from 'AAA'; placed on RWN

  -- EUR126.6 million Class C due July 2017:
     downgraded to 'A' from 'AA'; placed on RWN

  -- EUR39.2 million Class D due July 2017:
     downgraded to 'A' from 'AA'; placed on RWN

  -- EUR80.8 million Class E due July 2017:
     downgraded to 'BBB+' from 'A'; placed on RWN

  -- EUR81.3 million Class F due July 2017:
     downgraded to 'BBB' from 'A'; placed on RWN

  -- EUR38.7 million Class G due July 2017:
     downgraded to 'BB' from 'BBB'; placed on RWN

  -- EUR59.0 million Class H due July 2017:
      downgraded to 'BB-' from 'BBB'; placed on RWN

The principal reason for the rating action is the elevated
refinancing risk combined with the increasing risk of payment
default.  A combination of non-renewal of key tenant leases and a
deterioration in occupational markets has reduced the borrower's
prospects of re-letting the vacant space.  In addition, following
the bankruptcy of Lehman Brothers Holdings Inc, under the terms of
the loan agreement, the borrower must enter into a new hedge on
the same or similar terms.  In order to do this, on account of an
increase in applicable rates, the borrower would be out-of-pocket
by approximately EUR40 million.

Assuming no recovery of this shortfall by the borrower, a
replacement cap at prevailing rates would imply cash would no
longer be trapped under the current structure.  Cash already
accumulated in the reserve account will therefore be depleted at
the next payment date to maintain debt service.  The loan is
projected to suffer a payment shortfall in Q3 2009, unless the
space set to become vacant is re-let very quickly.

Since closing the property's valuation has fallen twice, resulting
in an increase in loan-to-value to 78.9% from 76.6%.  The delayed
September valuation is expected to report a further fall in value,
as yields continue to widen and as rental income veers downwards.

The affected classes of notes (B, C, D, E, F, G and H) have also
been placed on Rating Watch Negative to allow for further
information to be provided on the hedging arrangements and the
property's current value; in addition, Fitch will monitor how the
borrower responds to an expected increase in vacancy.


* BRITAIN: Experts Urge Sensible Reforms in Bankruptcy Laws
-----------------------------------------------------------
Insolvency experts have called on political parties to refrain
from knee-jerk reforms of Britain's bankruptcy rules as the
current regime marks its fifth birthday, Richard Tyler at the
Telegraph UK writes.  High profile business failure like Lehman
Brothers Holdings Inc., XL Leisure, and Faith shoes have placed
growing pressure on the government, the report adds.

The Treasury has already drawn up a new "special resolution
regime" to give the Government new powers to cherry pick assets
from financial institutions that get into trouble, the Telegraph
reports.

According to the report, the Conservatives under David Cameron's
leadership also see merit in importing aspects of the U.S.'s
Chapter 11 creditor protection laws, which are being used to give
Lehman Brothers time to restructure.

              Current Laws Remain "Fit for Purpose"

But the author of a Government-commissioned independent review of
the Enterprise Act, which took effect on Sept. 15 2003, said that
while the Act was about to face its biggest test, with business
failures set to rocket over the next 18 months, it remained "fit
for purpose," the Telegraph says.

The Telegraph notes that the Act aims to introduce an American-
inspired "second chance" business culture into Britain to
encourage "honest" business failures to try again by reducing the
power of secured creditors and the Crown.  It also aims to
introduce a faster, out of court procedure called "administration"
to ensure more companies survived and jobs were protected.
However, rogue directors would still be struck off by the
Government's Companies Investigations Branch.

The review of the legislation, published in January by Sandra
Frisby, associate professor at the University of Nottingham, found
that a rise of administrations involving existing directors
suggested the regime had been a success. Dr. Frisby stated
"there's clear evidence of a second chance culture. . .  . More
businesses are being saved," said Dr. Frisby.

Business recovery specialist Martin Austin at accountants Tenon
agreed, according to the report.   She asserted that "It's very
positive in respect of the rescue culture.  From a company
director's perspective it's not 'one strike and out'."

The regime would face its sternest test over the next two years as
the economy stalls and debtor companies becomes insolvent, the
Telegraph quotes Shay Bannon, head of restructuring at accountants
BDO Stoy Hayward, as saying.  She added that the regime "works
well" amid the stress-testing.

The review, the report relates, noted some unintended consequences
like the rising overall cost of administrations and the growing
use of "pre-packaged" administrations, where buyers for the
business -- often the existing directors -- are lined up before
the administration takes place, and without the consent of
creditors.  It also found evidence that company liquidations were
being dressed up as administrations to avoid creditor scrutiny.

Dr. Frisby asserted that HM Revenue & Customs is losing
GBP100 million annually from administrations and receiverships
after payment of taxes was placed further down the list of
priorities for administrators, the Telegraph relates.  Prior to
2003, the taxman had been treated as a secured creditor.

Lawyer Vernon Dennis, a partner at Howard Kennedy, also noted that
while, in some cases, directors could choose when their firms went
into administration, the high street banks remained largely in
control of the process, the Telegraph reports.

An Insolvency Service spokesman said that the government was
"encouraged" to see the increased use of the administration
procedure, according to the report.  "This suggests that more
emphasis is being placed on taking into account the needs of all
creditors," he said.  He added that the changes introduced by the
Enterprise Act would take a while to work through but would be
evaluated.


* S&P Sees Weakening Outlook for European Mining & Steel Industry
-----------------------------------------------------------------
The outlook in the European mining and steel sectors has become
more negative in recent months, but credit quality remains
generally resilient, according to an industry report card titled
"Outlook Weakening In European Metals And Mining Industry, But
Ratings Generally Resilient," published by Standard & Poor's
Ratings Services.

"Demand in the developed markets of Europe and the U.S. is
weakening, and concerns are growing that economic growth in
emerging markets is also slowing," said S&P's credit analyst Alex
Herbert.

Market prices for many base and precious metals are declining --
some sharply, though prices for bulk commodities remain high.
Input costs have risen considerably, especially in steel, and,
after a significant rise in steel prices in response, prices are
now turning down.  Large-scale spending on capital expenditures
and acquisitions continues to consume cash flows.

"Event risks remain, notably from merger and acquisition activity,
where the willingness to pursue quite large transactions persists,
albeit at a lower level than in recent years, but where the
ability to close them has become more difficult," Mr. Herbert
added.

Furthermore, liquidity is a growing concern, as access to debt and
equity capital markets is still tight and expensive, especially
for lower-rated issuers, against a backdrop of highly turbulent
credit markets.  S&P will continue to monitor liquidity, paying
particular attention to companies with relatively high short-term
debt that rely on banks to roll over or extend maturities, or
where financing requirements depend on access to new capital.

Notwithstanding these negative developments, there have been few
rating actions in the past six months, and the majority of rating
outlooks remain stable.  This reflects ongoing financial
flexibility within ratings, enhanced in recent years by high cash
flow generation, and the business risk benefits of corporate
actions, such as acquisitions, which have strengthened cost
positions or added diversity.

"Absent major debt-financed acquisitions or a significant economic
downturn, which is not our central expectation, we expect headroom
within ratings for many issuers to provide some downside
resilience in the coming months," said Mr. Herbert.  "However,
companies faced with liquidity pressures remain vulnerable to
sharp credit quality deterioration, and rating downgrades."


* S&P Eyes Significant Impact on Global Synthetic CDOs From WaMu
----------------------------------------------------------------
Standard & Poor's Ratings Services stated that 2,159 tranche
ratings from 1,526 global synthetic collateralized debt obligation
(CDO) transactions have exposure to Washington Mutual Inc. (WaMu),
which S&P downgraded to 'D' ("Washington Mutual Inc. Ratings
Revised To 'D' After Receivership And Sale To JPMorgan Chase").

The impact of the WaMu downgrade to 'D' will be reflected in our
upcoming Global SROC Report and associated rating actions.  S&P
expects the impact will be significant, particularly among
transactions that reference WaMu and other obligors that have also
experienced recent negative rating actions and/or credit events,
such as Lehman Bros. and AIG.

Synthetic CDO exposure to Washington Mutual Inc.

U.S.          No. Of deals       514
U.S.          No. Of tranches    803
Europe        No. Of deals       752
Europe        No. Of tranches    1,047
Asia Pacific  No. Of deals       138
Asia Pacific  No. Of tranches    154
Japan         No. Of deals       122
Japan         No. Of tranches    155


* Europe Needs Tougher Laws, European MEPs Assert
-------------------------------------------------
European MEPs want the European Commission to draw up tougher laws
to regulate the activities of hedge funds and private equity
funds, according to BBC News.  The European Parliament, in a vote
on Tuesday, Sept. 23, 2008, backed the report that calls for more
transparency in company managers' reward packages.  It also wants
mandatory capital requirements for investment firms, BBC News
adds.

MEPs backed the report, with 562 voting for, 86 against and 25
abstaining, BBC News notes.

Former Danish Prime Minister Poul Nyrup Rasmussen, head of the
Party of European Socialists, compiled the report, according to
BBC News.  It urges the European Commission to draw up new
financial legislation before the end of 2008.

The report was prepared before the Wall Street banking crisis
which saw the collapse of Lehman Brothers Holdings Inc. and the
U.S. authorities' move to stabilize markets with a US$700 billion
public bail-out plan, BBC News says.

BBC News relates that, among other things, the report says:

   -- capital requirements should be mandatory for all
      financial institutions and should reflect risk;

   -- codes of conduct for credit rating agencies, regarding
      visibility of assumptions, product complexity and business
      practices;

   -- EU should give oversight of the agencies' activities;

   -- Reward packages should be aligned with longer term
      outcomes, reflecting losses as well as profits; and

   -- commission should also ensure that barriers to cross-
      border investments by venture capital funds are removed
      in the EU.

Liberal Democrat MEPs said they softened the original draft of Mr.
Rasmussen's report, so that hedge funds and private equity were
not singled out, BBC News reports.  Lib Dem MEP Sharon Bowles said
"it is important that the parliament does not adopt a reactionary,
knee-jerk response to recent events.  Ms. Bowles said that
targeting hedge funds and private equity specifically for
regulation is not the right.  She added that "Regulation must be
non-discriminatory."

British Conservative MEP John Purvis, echoed Ms. Bowles' concern
saying "an overzealous knee-jerk reaction in Europe is futile in a
global economy".

The EU Internal Market Commissioner, Charlie McCreevy, told MEPs
that it was necessary "to analyze the impact of the existing EU
provisions and of additional member states' rules in this field
before one embarks on introducing any new legislation".


* EU's Bank Regulation Hardly Keeps Up with Cross-Border Expansion
------------------------------------------------------------------
Bank regulation at the European Union level has hardly kept up
with the expansion of major European banks across the continent,
according to Matthew Saltmarsh of The New York Times.  These
expanding banks are amassing large pools of capital and customers.

Based on the report, Britain, Germany, Ireland and Sweden, among
other countries, have moved to a single supervisor who oversees
banks and other segments of the industry.  Other countries, like
France and Spain, have retained an older model with different
regulators for different sectors.

The NY Times says that if one of the new Continental giants find
itself under threat like some U.S. banks, the European bank would
be forced to deal with a multitude of potential crisis managers,
none with overarching authority.  Richard Portes, professor of
economics at the London Business School, said that "the
arrangements will prove inadequate."

Despite being spared from the worst fallout on the Wall Street,
European lenders will be affected by the patchwork of rules
applied to financial services, the NY Times relates.

The coordination of European financial supervision has gradually
improved evidenced by the periodic meeting of regulators, the NY
Times quotes an analyst as stating.  However, the report says that
the opaque nature of rules in different countries concerning the
insolvency of financial institutions is causing particular unease
in Europe.

The report comments that a bailout that the U.S. made would be
difficult in Europe since rescuing even one major bank operating
across borders would need political will and coordination that
might be lacking.  The NY Times says that the U.S. Federal Reserve
and the Treasury were able to move quickly and jointly to create
the US$700 billion rescue plan.

Analysts, based on the report, remain doubtful on whether the
central bankers and supervisors in Europe would be able to
exchange accurate and timely information out of their periodic
crisis simulation exercises.

Despite the relatively slow pace of the banking integration in
Europe, there have been several cross-border deals like Banco
Santander of Spain that owns the British mortgage lenders Alliance
& Leicester and Abbey National, and has consumer finance
operations in a number of countries.  UniCredit of Italy now owns
HVB of Germany and Bank Austria and in October, Royal Bank of
Scotland led a European consortium to buy ABN Amro of the
Netherlands, the NY Times notes.

Still, the European Central Bank has proved adept in handling the
liquidity issues related to the current crisis, providing large
amounts of money for banks to borrow, the NY Times writes.  Graham
Bishop, an independent consultant on financial services in Europe,
asserted that the ECB can address liquidity crisis, according to
the report.


* Large Companies with Insolvent Balance Sheet
----------------------------------------------
                                Shareholders    Total   Working
                                    Equity      Assets   Capital
                          Ticker    (US$MM)    (US$MM)   (US$MM)
                          ------ -----------  -------   --------

AUSTRIA
-------
Libro AG                            (111)         174     (182)


BELGIUM
-------
Sabena S.A.                          (86)       2,215     (297)


CZECH REPUBLIC
--------------
Ceskomoravska Kolben &
   Danek Praha Holding               (89)         192   (2,186)
Setuza A.S.                          (55)         145   (1,120)


DENMARK
-------
Elite Shipping                       (28)         101       19

FRANCE
------
Banque Nationale
   de Paris Guyane        BNPG       (41)         352      N.A.
BSN Glasspack                       (101)       1,151      179
Charbo De France                  (3,872)       4,738   (2,868)
Euro Computer System                (110)         682      377
Grande Paroisse S.A.                (927)         629      330
Immob Hoteliere                      (67)         301      (13)
Matussiere et Forest S.A. MTF        (78)         294      (28)
Pagesjaunes GRP           PAJ     (3,023)       1,377     (311)
Pneumatiques Kleber S.A.             (34)         480      139
SDR Picardie                        (135)         413      N.A.
Soderag                               (3)         404      N.A.
Sofal S.A.                          (305)       6,619      N.A.
Spie-Batignolles                     (16)       5,281       75
Selcodis S.A.             SPVX        (9)         134      (26)
Trouvay Cauvin                        (0)         134       10
Usines Chausson                      (23)         249       35


GERMANY
-------
Alno AG                   ANO        (21)         340      (61)
Babcock Borsig            BBX      (1608)         137   (1,309)
CBB Holding AG            COB        (43)         905      N.A.
Cinemaxx AG               MXC        (38)         178      (32)
Dortmunder
   Actien-Brauerei        DABG       (13)         118      (29)
EM.TV AG                  EV4G.BE    (22)         849       15
F.A. Guenther & Son AG    GUSG       (10)         111      N.A.
Kabel Deutschland                 (1,199)       2,280     (306)
Kaufring AG               KAUG       (19)         151      (51)
Maternus Kliniken AG      MAK.F      (13)         190      (68)
Nordsee AG                            (8)         195      (31)
Primacom AG               PRC         (5)         662      (47)
Schaltbau Hold            SLT         (3)         240       14
SinnLeffers AG            WHGG        (4)         454     (145)
Spar Handels- AG          SPAG      (442)       1,433     (234)
TA Triumph-Adler          TWN        (72)         462      (53)

GREECE
------
Petzetakis-PFC            PETZP       (8)         263      (98)
Radio A.Korassidis        KORA      (101)         181     (139)
   Commercial

HUNGARY
-------
Exbus PLC                 EXBUS     (30)         118    (5,162)

ICELAND
-------
Decode Genetics Inc.      DCGN     (146)         156       48

IRELAND
-------
Elan Corp PLC             ELN      (388)       1,599       484
Waterford Wed Ut          WTFU     (145)         897       208


ITALY
-----
A.S. Roma S.p.A.          ASR        (12)         188      (49)
Binda S.p.A.              BND        (11)         129      (20)
Cirio Finanziaria S.p.A.            (422)       1,583     (396)
Gruppo Coin S.p.A.        GC        (154)         801      (50)
Compagnia Italia          ICT       (138)         527     (235)
Credito Fondiario
   e Industriale S.p.A.             (200)       4,218      N.A.
Finpart S.p.A.                      (152)         732     (322)
I Viaggi del
   Ventaglio S.p.A.       VVE        (64)         529      (88)
Lazio S.p.A.              SSL        (32)         254      (33)
Olcese S.p.A.             OLCI.MI    (13)         180      (64)
Parmalat Finanziaria
   S.p.A.                        (18,419)       4,121  (12,481)
Snia S.p.A.               SN         (12)         447       21
Technodiffusione
   Italia S.p.A.          TDIFF.PK   (90)         152      (24)


NETHERLANDS
-----------
Baan Company N.V.         BAAN        (8)         610       46
United Pan-Euro Air       UPC     (5,266)       5,180   (8,730)


NORWAY
------
Interoil Exploration      IOX         (9)         205      (11)
Petroleum-Geo Services    PGO        (32)       2,963   (5,250)


POLAND
------
Vista Altan               VAFK       (15)          174      (4)


ROMANIA
-------
Oltchim RM Valce          OLT         (7)         673     (417)
Rafo Onesti               RAF       (430)         353   (1,510)


RUSSIA
------
East Siberia Brd          VSNK       (79)         107     (278)
Omskij Kauchu             OMKA        (4)         125   (1,794)
OAO Samaraneftegas                  (332)         892  (16,942)
Vimpel Ship               SOVP       (93)         281     (420)
Zil Auto                  ZILLP     (178)         425  (10,597)


SPAIN
-----
Altos Hornos de
   Vizcaya S.A.           AHV       (116)       1,283     (278)
Santana Motor S.A.       LRSA        (46)         223       41


SWITZERLAND
-----------
Fortune Management                   (85)         348      (37)


TURKEY
------
Nergis Holding                       (24)         125       26
Yasarbank                           (948)         623      N.A.


UKRAINE
-------
Dniprooblenergo           DNON       (51)         433   (1,010)
Donetskoblenergo          DOON      (341)         573   (2,365)


UNITED KINGDOM
--------------
Abbott Mead Vickers                   (2)         168      (16)
Alldays Plc                         (120)         252     (202)
Amey Plc                  AMY        (49)         932      (47)
Atkins (WS) Plc           ATK       (150)       1,390       62
Bagleys Investment                  (247)       1,094     (126)
BCH Group Plc             BCH         (6)         188      (44)
Blenheim Group            BEH       (153)         198      (34)
Booker Plc                BKRUY      (60)       1,298       (8)
Bradstock Group           BDK         (2)         269        5
Brent Walker Group        BWL     (1,774)         867   (1,157)
British Energy Ltd                (5,823)       4,921      290
British Energy Plc        BGY     (5,823)       4,921      434
British Nuclear
   Fuels Plc                      (4,248)      40,326      977
Carlisle Group                       (12)         204       15
Compass Group             CPG       (668)       2,972     (298)
Dowson Holding            DWN        (18)         226       31
Dignity Plc               DTY         (9)         648       35
Easybroker PLC                        (1)         287       (1)
Easynet Group             ESY.L      (45)         323       38
Electrical and Music
   Industries Group       EMI     (2,266)       2,950     (296)
Evans Healthcare                     (86)         239     (144)
Global Green Tech Group             (156)         408      (18)
Imperial Chemical
   Industries Plc         ICI       (370)       8,393        2
Ladbrokes Plc             LAD       (894)       2,139     (356)
Lambert Fenchurch Group               (1)       1,827        3
Legal & Gen. Fin.                     (7)       3,576     (522)
M 2003 Plc                        (2,204)       7,205     (756)
Misys Plc                 MSY         (7)       1,123     (131)
Mytravel Group            MT.L      (380)       1,818     (488)
New Star Asset                      (418)         368       10
Next Plc                            (156)       3,224      (63)
Norbain Finance                      (10)         280      (10)
Orange Plc                ORNGF     (594)       2,902        7
Rank Group Plc                       (26)       1,209      (88)
Regus Plc                            (46)         367      (60)
Saatchi & Saatchi         SSI       (119)         705      (41)
SFI Group                 SUF       (108)         178     (162)
Skyepharma PLC            SKP       (117)         212       11
Spirit Group                         (75)         365      (56)
Telewest
   Communications Plc     TLWT    (3,702)       7,581   (5,631)
Trio Finance              TRIO       (14)         592      N.A.
Wincanton Plc             WIN        (27)       1,451      (78)


                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.

                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Zora Jayda Zerrudo Sala, Pius Xerxes Tovilla, Joy
Agravante, Melanie Pador, Marie Therese V. Profetana and Peter A.
Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN 1529-2754.

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